Germany Gambling Laws – Are They Up to Date
Germany is Europe’s strongest economy, but for all its economic might, the country is yet to develop a proper online gambling scene. Present Germany gambling laws prevent operators from establishing a worthwhile product for local bettors. German players are forced to resort to foreign companies to get their entertainment. However, changes are coming soon and fast. Find out about the current state of German iGaming and its future in the article below.
Gambling Laws in Germany – Not in Line with the Times
With Germany being in the top five world economies, one would think that the country would have a sprawling online betting industry. The reality is much different, however. Germany is one of the few European countries that does not regulate or even permit iGaming in any meaningful capacity.
Under the current Germany gambling laws, online betting is forbidden across the Federal Republic – with one exception but more on that later. The Interstate Treaty on gambling states that all forms of Internet gambling are forbidden. This includes both casino gaming and sports betting. There are no licensing options, regulations, or even guidelines for operators; just an outright ban.
At the moment German gamblers who wish to place a bet can only do so at foreign betting sites. As you can imagine, there are no reliable protections for such individuals and in case of a dispute, they have no recourse. This is a tough position for players, who can only look with envy as their neighbours in other countries enjoy full-fledged gaming.
Land-based gambling is not subject to the same draconian laws and is permitted in its full capacity. Casino gambling and sports betting fall under local state jurisdiction, with each Bundesland having the final say on the matter. The individual states decide how to regulate gambling in their regions and how to tax it. The Ministry of the Interior is the institution tasked with the oversight on gambling.
The German gambling scene is a strange duality, where traditional betting is fully legal and regulated, while its virtual counterpart is repressed. In any event, this has been apparent for quite a while and lawmakers have recently introduced changes to liberalise the betting scene.
Schleswig-Holstein – The Bet-Friendly Bundesland
Of course, not all states have been as repulsed by the notion of online gambling. One, in particular, has gone against the grain and fully legalised and regulated the industry. It is currently the only Bundesland to allow legal and worthwhile online gambling. Schleswig-Holstein issues its own licenses and uses specific regulations to ensure fair gaming and player protections.
However, since online gambling is only allowed within the borders of Schleswig-Holstein, players have to be physically located in the Bundesland. This is similar to the US online gambling debacle, where a gambler’s current location is tracked to ensure that they are accessing the online casino from within state limits. Online gambling is not permitted outside of Schleswig-Holstein and as soon as you leave the state, your access to the specific gambling platform is revoked.
This system is not particularly convenient, but it is a compromise between the state’s desire to bring in tax revenue and the Federal Government’s overall stance. What’s more, not all casino games can be played online. Namely, the state does not allow blackjack, baccarat, or roulette. This leaves slots as the only major gaming genre available. While a lacklustre solution in principle, most gamblers play primarily slots. As a result, it has worked out quite well for most involved.
Changes to Online Gambling Laws
It was expected that the online gambling laws Germany has adopted would not last forever. This came true in 2020 when the Federal Government revised the Interstate Treaty to finally permit some iGaming. The new regulations are set to come into effect in 2021 and will finally allow the German public access to genuine and safe online casino games.
Under the new gambling laws in Germany, online operators will be given the opportunity to apply for a country-wide license. A new institution will be established to regulate and police the new online market. It all looks like sunshine and rainbows; however, Berlin has also accepted some interesting policies.
A Hint of Draconian Rule Remains
After decades of scoffing at the idea of online casino gaming, it was a stretch to believe that lawmakers would permit operators full freedom. As a result, there are strict limitations on what companies are allowed to offer. For example, bets on slots will be capped to €1.00 per spin. Furthermore, the convenient auto-play function of modern video slots has to be removed. Jackpots cannot be tied to slot games, which will no doubt disappoint those hoping to score the Mega Moolah progressive prize pool.
Online sports betting is also affected. Namely, live betting markets are limited to guessing the result and the next scorer. There will also be a €1000 deposit limit across all betting sites, leaving high rollers in tears.
In short, online gambling laws in Germany have a long way to go before they can match those of the UK or other developed betting scenes. It is obvious that the government is still not ready to accept iGaming in its full capacity. Despite this, the state has already received several dozen applications for gambling licenses.
Nobody doubts that the German betting scene will be for the better following these new developments. Yet still, the new Germany gambling laws are restrictive and will not allow the market to grow to its full potential. We can only hope that the future will bring new and exciting changes to the young industry.
FAQ about German Gambling Laws
Laws are complicated and not everyone is interested in reading through all of them. Sometimes, you only want the cliff-notes version. To this end, we have prepared a small FAQ section that aims to provide additional answers to questions you may have.
