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Germany’s New Online Rules And Regulations For Gambling

Germany’s gambling has been very strict and complicated. Still, the introduction of the updated Treaty on gambling (“ISTG 2021”) on March 12, 2020, gives new licensing possibilities to those in the online gaming industry. This fantastic news will push the current ban on online slot machines and poker that have only been operating out of one state, Schleswig-Holstein. You can study more about it from Wildz online casino. This new treaty will also outline rules on gambling advertising, licensing conditions, and tax rates.

What Are The New Regulations?

Germany’s online gaming has been restricted over the past, and changes had to be made hence done by the heads of state in 2020 and come to effect on July 1st, 2021. The restrictions were placed to protect the players and to prevent gambling addictions. Limitations include limits for spin-stakes, strict advertising laws, slot machines restrictions, and limits on in-game sports betting.


1. Account Verification

Players’ accounts need to be verified properly and ensure the credentials given are of the player. This will be the work of the provider to check and confirm the details. This prevents fraud and other crimes from taking place. To set up the gaming account, a player shall register with the organizer with further information of first name, last name, date of birth, place of birth, and the residential area. Organizers will then verify the accuracy of the information. A unique feature is that the authority will set up a file to which all providers must report and join. Clients may use other people’s identities, but when they get to be verified, it prevents identity theft as those caught are black listed.


2. Slot Machines

Having that, the slot machines were quick to give the game results; they are now required to spin and last for a minimum of 5 seconds, and the maximum stake for each to be capped at €1.00 per game. Any player that wants to play the most popular game will face restrictions on jackpots.


3. Advertising

Although there’s a positive side to the new rules placed, there are still minor restrictions. Online gambling platform advertising is not allowed between the hours of 06:00 and 21:00. The German states hope that this restriction will help and not impact the lives of the young generations because they are vulnerable, and these sites may take advantage of them. Also, minors should not be their target audience.


The new advertising law also prevents the platforms from the cross-advertising, meaning they can’t promote their casino while the player is playing another game.


Advertisements about online gaming should also not be misleading as well as promotion of gambling. Directed advertising via texts and calls is also limited, according to the new treaty.


4. Sports Betting

A limit has been placed at a maximum of €1000 per month, and they will be monitored by the service providers. Betting is allowed on the outcome of the game and the events that take place. Live betting is also allowed, but the rules are not clear about it yet. Sports betting on the occurrence of illegal behaviour or the sanctioning of unlawful conduct is not permitted.


5. Online Operators

Over the years, the law has been turning a blind eye to the illegal operators who have been operating above the law, but according to the new treaty, they won’t be overlooked.


Online operators should update their systems according to the new laws made and ensure they abide by them.


6. Licensing

The regulations around licensing state that companies with licenses will operate across Germany. The permit will be valid for five years.


According to the ISTG, by 2021, private companies can apply for licenses to offer virtual slot machines, sports betting, and online poker. For an online gaming site to be approved, it has to have three aspects: valuable consideration, determination of winnings, and a chance to win.


A new body will be formed that will be based in the German state of Saxony-Anhalt that will act as a gambling regulator. This body will be responsible for issuing licenses.


7. Opposition Will Be Involved

This agreement represents a compromise that will unify Germany with Sweden and the Uk. German players used to gamble under the European Union license that sees the money being gambled.


Through the treaty, online companies wanting to operate in Germany can but have to apply for a specific license and have a base in Germany. They’ll have to employ German speakers to communicate with players and would pay taxes.


8. Payment Transactions

Unlicensed gambling will not be participating in payment transactions. The supervisory body will issue orders to prohibit the payment transactions and be banned and prevented from participating in payments. Deposits and withdrawals via anonymous means of payment such as bitcoins are not allowed.


Other Regulatory Requirements For Online Gambling in Germany

  1. Record the suspension of players in the suspended player’s database that’s also called the black list.

  2. Comply with data protection and storage requirements.

  3. Implement and regularly monitor their IT security concept.

  4. Ensure exclusion of minors and suspended players through appropriate technical procedures.

  5. Uses a technical system that records all the data required for the gambling supervision that stores data digitally.

  6. Transmit information to the joint law enforcement authority to maintain a central limit database to ensure compliance with online gambling regulations.

  7. When playing, the player has to pay a minimal amount issued by the state and not more than that.

Take Away

For the new treaty to be effective, time must pass, and the results will be seen. But they’ll have to make sure German sites are more attractive. Although there’s competition from other online companies, allowing them to do business in the country is a win-win situation as they have to pay their taxes and the licensing fees. Companies should seek advice and consult with experienced German legal professionals before proceeding with the new rules and regulations.


Source: https://www.betconsultantcy.com/




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