Legalization of Online Casinos in Germany. The First Online Casinos Have Already Received a License
German regulators have been working for years to develop sensible and appropriate laws for internet gambling; it has been a bumpy road. It was not until the first quarter of 2020 that the new State Treaty on Gaming was finally ratified. A new battle for the best online casino in Germany was ignited. Since July 2021, new gambling services can be licensed. But what are the terms of the law? Read on to find out more. Many of the new laws allow licensed operators to offer online casino games, but these are heavily regulated. The public speaks of heavy intervention in terms of limits, bans on games, and many other processes.
Germany is an important market in the gambling sector that is undergoing drastic changes at the moment. Meanwhile, the first online casinos with licenses from Germany are active. A new generation of casino online in Germany, which, on the one hand, are characterized by security. However, unfortunately, they are subject to the aforementioned restrictions. In the following paragraphs, we dedicate ourselves to this topic, including all its details.
Online casino at the peak of popularity in Germany
The gambling industry has been experiencing a renaissance in Germany for years. Playing in online casinos is finally socially acceptable and has been able to shed its negative image. An end to the success and expansion into new areas is not in sight. On sites like https://casinoallianz.com/ the fierce competition can be understood.
The growth of the gambling market
For 2018, all forms of gambling in Germany contributed to a total of EUR 14.2 billion in Gross Gaming Revenue. An additional 2019 survey by the European Gaming & Betting Association (EGBA) indicated that over 20% of all gambling in the nation takes place online. That amounts to an estimated EUR 2.7 billion in gross gaming revenue (GGR) from online gambling. Separating this into its parts is difficult, but recent research predicted that online casinos in Germany would earn EUR 2.2 billion in 2019 – and a projected EUR 3.3 billion in 2024.
A positive aspect for the economy
Gambling taxation varies widely in Germany, but it does put a lot of money into the state treasury.
● Online sports betting is subject to a 5% tax charge.
● A 5.3% levy is levied on online gambling sites, including casinos and poker rooms.
● Online gambling establishments must pay a 19% tax on all gambling winnings.
Player statistics in the population
75% of Germans, according to the data, have tried gambling at least once. Above, we see that around 19% of all gaming in Germany takes place online. Considering that 75% of Germany’s 83 million residents have tried gambling at least once, we may estimate that 12 million people in the country have participated in online gambling. The majority, or 70%, are men. Approximately 70% of them are in the prime of their lives, between the ages of 25 and 44. From 62% of regular gamblers. In Germany, most people who gamble online do it using their smartphones.
Online casino in Germany. Legal bases
Best online casinos Germany are legal for the first time and are subject to numerous regulations to prevent the protection of minors and players. The respective games are subject to individual rules. As a rule, only slot machines may be offered in casinos with a German license.
Games of chance available at a casino in Germany, including slot machines and traditional table games such as roulette and blackjack, are subject to the new State Treaty on Gaming. It came into force nationwide on July 1, 2021. This distinguishes between “virtual slot machines” and classic “online casino games” such as roulette, blackjack, and baccarat at gambling sites in Germany. Due to this new legislation, it is possible for the first time for companies to apply for licenses to offer online slot machines. A central gambling authority has been established in Saxony-Anhalt. Its full operation will not begin until 2023. The newly created gambling authority is responsible for issuing temporary licenses for online casinos.
In terms of the new German state treaty, online sports betting can be regulated for the first time, among other things. In the narrower sense, this includes betting on sports and associated leagues. At the moment, virtual sports betting and e-sports are not yet permitted. Currently, the responsible regulatory authorities are investigating whether these are permissible. The state of Hesse is responsible for issuing licenses for sports betting. The Darmstadt Regional Council will take over these agendas from 2023, and decisions on the awarding of licenses will be made jointly with the gambling authority of Saxony-Neu-Anhalt. These are intended for sports and horse betting. Online casinos will thus be licensed separately from sports betting. Cross-licensing is still possible.
Lotteries and class lotteries are subject to a state monopoly. It is the responsibility of the Ministry of the Interior, or the Regional Council, to issue licenses for the lotteries of the individual federal states and to monitor their operation. In this case, the Rheinland-Pfälzische gambling supervisory authority is responsible for issuing licenses and monitoring operations throughout the state. In 2023, the newly established Joint Gambling Authority of Saxony-Anhalt will be responsible for issuing licenses throughout Germany, thereby creating a central licensing authority.
Online casino licensed in Germany
The State Administration Office of Saxony-Anhalt has announced that it has now granted nine additional licenses for online gaming machines and poker in addition to the 3 granted licenses. This means that the first providers have already been able to launch successfully. Since a new state treaty legalized offerings on July 1, 2021, 71 applications for licenses to operate casinos online in Germany have been submitted. Currently, many more applications are being reviewed, but so far, only one has been officially rejected, and eight have been dropped. Since the online casino pact came into effect in Germany, the office said, 25 companies have been referred to prosecutors for violating German law. The move came as part of the authority’s fight against gambling sites that do not have a license. A total of 871 online gambling sites and 148 cases of illegal gambling have been investigated. “Issuing licenses for online poker and virtual slot machines is still the most important thing” said Thomas Pleye, the head of the Saxony-Anhalt state administration office. “The first licenses in this area were issued by our office”. Germany Online casino regulation is making great progress. The following online casinos have already been licensed in Germany and are equipped with a full German gambling license:
Casino mit deutscher Lizenz Betreiber
BingBong Casino Mernov Betriebsgesellschaft mbH
Jokerstar Casino Kling Automaten GmbH
JackpotPiraten DGGS, früher Mernov
mybet Casino und Sportwetten Rhinoceros Group
TipWin Casino TipWin Ltd.
Slotmagie Casino Mill Adventure Limited
Novoline Casino BluBet Operations Ltd
Features of a license for an online casino in Germany
The first draft law for the new state law was already sent for notification by the Federal Ministry for Economic Affairs and Energy in the previous year, May 2020. The focus is on an all-German concept for the legalization and regulation of online casinos in Germany.
The main functions of the license
The objectives of online casino law in Germany are clearly defined. The top priority is a uniform legal basis throughout Germany and player security. Appropriate measures and regular controls are intended to combat fraud, manipulation, gambling addiction, and crime in the gambling industry, thus making online casinos safe.
● Prevention and protection against gambling addiction – The loss of control in gambling can have consequences that threaten the very existence of the company. Operators of online casinos are required by law to implement appropriate measures for responsible gambling. Transparent presentation of losses and winnings and the possibility of self-blocking are just the tip of the iceberg. Combating gambling addiction is the top priority.
● Youth protection – The German Gaming Treaty (GlüStV) currently stipulates defined standards whose observance is subject to frequent inspections. This factor is especially important regarding the safeguarding of underage gamblers. Legalization aims to prevent the appearance and proliferation of unauthorized gambling on black markets, and thereby significantly increase safety for players.
● Fair competitive conditions – While previously, there was only an official German gambling license in Schleswig-Holstein, the new online casino law allows providers nationwide to apply for a German license. Since there are no restrictions on granting licenses, the same conditions apply to all market participants. In this way, fair competition within the German gambling scene is supported.
● Tax income – Even though this is not an official goal, this factor certainly plays a crucial role. There is no question that the treasury is missing out on billions in tax revenue in Germany due to the situation. The legalization of gambling should generate additional revenue and establish jobs.
New rules for more safety
Gambling in Germany has been dramatically changed by the new legislation. The following is an overview of the most significant cutbacks:
● Ban on the table games like blackjack, roulette, and baccarat
● Ban on live casino offers
● Minimum 5 seconds per game round
● Deposit limit of 1000 Euro
● Maximum €1 per game round
● The nationwide player blocking file
● Ban on simultaneous play at multiple online casino providers
● Prohibition of advertising between 6 a.m. and 9 p.m.
● Establishment of a panic button, which players can lock themselves for 24 hours
● Regular notices to the players about winnings and losses
Criticism of gambling law
Maarten Haijer, the European Secretary-General for Gambling and Betting, has strongly condemned the pending regulatory reforms. He fears that German operators will not be able to keep up with their European competitors. Stake limits, time restrictions, and product limitations prevent licensed providers from satisfying market demand. He sees a bleak prognosis, which will significantly limit German suppliers. In this way, illegal providers are given an additional competitive advantage. In another respect, there are concerns about the licensing process itself. Vierklee, an Austrian gambling company focusing on sports betting, filed a lawsuit with a German court in April.
It is criticized, that parts of the licensing process, in particular, were not transparent. At that point, the Darmstadt Regional Council in Hesse, Germany’s sports betting authority, quickly awarded 15 sports betting licenses. Germany is one of the most important gambling markets in the EU and holds gigantic potential for value creation. While there is plenty of criticism about the short time for new adjustments, the German gaming industry will be worth up to 3.3 billion euros by 2024. That represents tremendous added value for potential investors. Large international companies such as GVC have already obtained licenses to operate casinos and sports betting. Many more international providers will follow.