Changes in Online Gambling Regulations in Germany as New Year Approaches
Let's dive into the latest updates on online gambling in Germany for 2021!
Last fall, the transitional regulation was introduced, causing many providers to adjust their platforms. However, the entry into force of the German gambling treaty scheduled for July this year may not be as secure as previously thought. Here's everything you need to know about the 2021 gambling treaty and the changes it brings, as well as what you should pay attention to when using legal sports betting websites and online casinos.
Online gambling in Germany: Transitional regulation in effect since October 2020
Gambling companies who aspire to obtain an official German gambling license must adhere to the transitional regulation since last October. This includes excluding the possibility of placing bets on various events, a monthly deposit limit of 1,000 euros, and a quick immediate exclusion. A state authority will oversee these changes, allowing affected players and bettors to block themselves from all offers.
Renowned bookmakers and online casinos have adapted their offers to the transitional regulation of the German gambling state treaty (commonly called the gambling treaty). To obtain a license, providers must form a reserve of 5 million euros and face fines upwards of 500,000 euros if they violate regulations.
Casino adjustments are more extensive
The changes in online casinos were more extensive. Providers who comply with the transitional regulation can currently offer only slot machines, as table games like roulette and blackjack or live casino offers are not supported yet. The gameplay on slot machines has been changed, with each individual spin taking 5 seconds and maximum deposits being limited. Both online casinos and sports betting providers require immediate identity verification upon registration.
Current legal situation on shaky ground
January 2021 saw difficulties emerge as Saxony-Anhalt, the federal state responsible for creating the nationwide authority for regulation, faces challenges. Delays in ratification from 13 of the 16 federal states may further complicate matters.
If you focus on providers that comply with the transitional regulation and target a concession from the Darmstadt Regional Council, you are on the safe legal side. While this means some restrictions like the waiver of live or event betting or playing at table games, jackpot machines, or in the live casino, your gambling activities will remain legal. However, residing in certain states, such as Bavaria, may still cause bank-related issues when making high payouts at online casinos.
Online casinos with licensed providers
While official licenses have not yet been issued for online casinos in Germany, a few official licenses have already been granted to bookmakers that comply with the requirements of the new legislation and have been licensed by the Darmstadt Regional Council:
- Bet-at-home
- sportingbet
- Interwetten
- Bet365
- Bwin
- Tipwin
- Admiral
- Tipico
Key questions about the German Gaming Agreement 2021 & Online Gambling Germany
When does the Gaming Agreement come into effect?
While July 1, 2021, was initially planned, delays due to political challenges could prolong the process.
How will new rules be monitored?
An online query system called OASIS (Online Query Player Status) is set to be introduced, overseeing all sports betting and every online casino across Germany.
Does the 1,000 euro limit apply to one provider or all providers?
The 1,000 euro limit applies to all payment methods across providers.
Can I play with providers that do not adhere to the rules?
While theoretically possible using VPN software, we advise against it, as it could lead to complications when withdrawing winnings from free spins or similar offers.
Will the German gambling tax affect online casinos?
There is currently a debate on introducing a tax for online gambling, in which players would have to pay a percentage of their stake as tax. Online casinos will collect this tax from players and pass it on to the German treasury.
- The transitional regulation for gambling in Germany, implemented in October 2020, requires providers to obtain an official German gambling license and adhere to rules such as a monthly deposit limit of 1,000 euros and a quick immediate exclusion.
- Despite the initial plan for the German gambling treaty to come into effect in July 2021, delays in ratification from several federal states may complicate the process.
- In the meantime, renowned online casinos such as Bet-at-home, sportingbet, Interwetten, Bet365, Bwin, Tipwin, Admiral, and Tipico have already received official licenses from the Darmstadt Regional Council, allowing them to operate within the transitional regulation.
