Licensing Procedure for Online Gambling in Germany Set to Start on July 1st

The German gambling landscape is undergoing a seismic shift with the introduction of the new Interstate Treaty on Gambling (ISTG 2021), which officially comes into effect on July 1, 2021. This pivotal legislation marks a new era for private gambling operators, who will now be able to apply for licenses to operate online sportsbooks, poker rooms, and video slots across Germany.

Key Regulatory Developments

Under the ISTG 2021, the gambling authority of Saxony-Anhalt will serve as the primary regulator overseeing all online gambling operations in the country. This centralization of regulatory oversight will provide a cohesive framework for operators while ensuring compliance with national standards. However, it is essential to note that the treaty imposes specific restrictions on certain casino games. Notably, iconic games such as blackjack and roulette are currently excluded from the licensing framework, with potential inclusion by individual states in the future.

Transition from Previous Legislation

The ISTG 2021 effectively replaces the previous treaty that was in place from 2012 until June 30, 2021. One of the most significant changes brought forth by the new treaty is the lifting of the longstanding ban on internet gaming. This transformation not only opens new avenues for gambling operators but also enhances player access to various gaming options.

Licensing Requirements and Financial Obligations

To ensure that only serious operators enter the market, the ISTG 2021 mandates that applicants for gambling licenses must submit a substantial security deposit ranging from €5 million to €50 million. The exact amount is determined by the operator’s anticipated monthly turnover, reinforcing the treaty’s commitment to maintaining a robust and responsible gambling environment.

Moreover, license holders are permitted to offer multiple gambling services under a single domain. However, it is crucial that each gaming service is distinctly separated to prevent simultaneous gameplay, ensuring that player engagement is both responsible and regulated.

Deposit Limits and Responsible Gambling Measures

A standout feature of ISTG 2021 is the cross-supplier deposit limit set at €1,000 per month for each player. This limit is implemented across all operators and platforms, with monitoring conducted via a centralized limit control file maintained by the regulator. Such measures are designed to promote responsible gambling practices, a critical concern for regulators and operators alike.

Additionally, the treaty imposes strict limitations on the access players have to online gambling services. Players cannot engage in games or betting products simultaneously, a regulation intended to foster a more controlled gambling environment.

Specific Guidelines for Video Slots and Sports Betting

Unique provisions in the ISTG 2021 address the operation of video slots, which are subject to strict guidelines. For instance, players must experience a minimum game time of five seconds per round, and stakes are capped at €1 per game. Importantly, the accumulation of stakes and wins for jackpot purposes is not permitted, ensuring that operators maintain transparency and integrity in their offerings.

Regarding sports betting, the treaty permits wagering on both the outcome of events and in-game occurrences, with live betting options available under specified regulatory guidelines. This introduces an exciting dynamic for sports bettors while still adhering to responsible gambling standards.

In conclusion, the ISTG 2021 represents a significant advancement in the regulation of online gambling in Germany. By introducing comprehensive licensing requirements, enforcing responsible gambling measures, and allowing for innovative gaming options, the treaty sets a new standard for the industry while ensuring the protection of players and the integrity of gaming operations. As the landscape continues to evolve, operators must remain vigilant and compliant, adapting to these regulations to successfully navigate the burgeoning market.