Germany's State Treaty on Gambling went into effect on July 1
Just before the weekend, on July 1st, Germany launched its legal online gaming market. The State Treaty on Gambling was created one year ago in 2020 and is now enacted in full force.
Germany expands online gaming offerings beyond sports betting.
Before the new market launch, the only legal online gaming in the country was sports betting. Now, slots and poker are available nationwide.
Lotteries now have the option to offer table games, though there is a trade-off. Either a region’s lottery monopolizes table games in the region or the declining table games and offers licenses to casinos instead.
A new tax rate for online gaming follows the new market launch.
With much controversy, a bill was approved by the Bundestag, setting a tax rate of 5.3% on online slots and poker games.
Many operators have criticized the regulation and tax rate, including the nation’s sports betting association Deutsche Sportwettenverband (DSWV). The argument is that this new tax rate jeopardizes the “success of the new gambling regulation,” as stated by the DSWV. They claim the new policies like a monthly spending cap and a cap on spin-stakes are unattractive to licensed operators.
The problem is if licensed operators provide less attractive gaming opportunities than unlicensed operators, players will more likely go to the unlicensed platforms.
The fight for responsible gaming sees a boost with the new regulations.
Kerberos, an anti-money laundering and compliance provider, agrees with the new rules. They state that now, legal and illegal operators can be easily separated. However, they also state the fight needs to turn digital.
Great changes are upon operators and players, alike, in Germany. The next few months will provide great insight into how effective this new market is.