Schleswig-Holstein first German state to license online casino
Schleswig-Holstein Leads the Way in German Online Gaming Regulation with New Licenses
In a landmark development, Schleswig-Holstein has officially become the first German state to issue licenses to commercial operators for the provision of live casino and table games. On September 18, coveted licenses were awarded to notable players in the industry including Tipico, BluBet, Austrian operator Cashpoint, and Skill on Net.
As part of this licensing agreement, operators must adhere to a variety of player protection regulations established by the state’s Ministry of the Interior. This initiative is designed to foster a safer gambling environment for consumers.
Interior Minister Sabine Sütterlin-Waack stated, “By enabling an attractive online offer, we aim to deter players from resorting to illegal offerings. This will allow them to engage with games they enjoy in a secure environment, thereby reinforcing legal gambling.” This proactive approach illustrates Schleswig-Holstein’s commitment to modernizing its gambling laws while prioritizing player safety.
Empowering German States with iGaming Licensing
Under the auspices of the newly formed federal gambling regulator, Gemeinsamen Glücksspielbehörde der Länder (GGL), operators in Germany can now seek licenses for online slots and poker. Established in July 2022, the GGL replaces the Saxony-Anhalt State Administration Office and aims to streamline regulation across the nation. However, each of Germany’s 16 states retains the authority to independently issue licenses for online casino table games.
This autonomy was granted through the State Treaty on Gambling (GlüNeuRStv), which took effect on July 1, 2021, signifying a significant shift in regulatory power towards individual states.
Industry Welcomes the Expansion into Online Table Games
Industry stakeholders have expressed enthusiasm about this regulatory shift. Christian Heins, Tipico’s iGaming Director, shared his excitement on LinkedIn regarding obtaining the license in his “home state” of Schleswig-Holstein, emphasizing his eagerness to engage in discussions with table games providers.
The Austrian gambling trade association, Österreichische Vereinigung für Wetten und Glücksspiel (OVWG), praised this regulatory advancement, asserting that a “safe and controlled regulatory framework” is essential to minimize risks for players. They further underscored that “the approval of these online casino games could now serve as a model for other German states,” indicating a potentially broader impact on the national regulatory landscape.
Confronting Germany’s Illegal Gambling Market
In light of the recent regulatory changes, Germany continues to grapple with an escalating illegal gambling market, largely attributed to regulatory delays and stringent advertising restrictions imposed on licensed operators. According to estimates from the GGL, the illegal market constituted approximately 4% of the overall Gross Gaming Revenue (GGR) in 2023, including both online and land-based sectors. However, local trade body DOCV challenges this assessment, estimating that illegal offerings account for approximately 20% of Germany’s online GGR.
This trend has significant implications for both operators and regulators, highlighting the necessity for a robust legal gambling framework capable of competing with illicit alternatives. As Schleswig-Holstein sets a precedent with its licensing approach, the success of this initiative may serve as a turning point in the ongoing battle against illegal online gambling throughout Germany.
As the gambling industry evolves, stakeholders must remain vigilant and adaptable, leveraging new opportunities while ensuring player protection remains a top priority. The developments in Schleswig-Holstein mark not only a step forward for the state but potentially a model for the future of online gambling regulation across Germany.
