EUROPE | iGaming Regulation Changes in Germany: Trick or Treat for Operators?
iGAMING REGULATION CHANGES IN GERMANY: Trick or Treat for Operators? Following regulation changes last year that lifted the prohibition of online casinos across Germany, some commentators announced future exponential growth for the iGaming market. But, as with many new changes in federal policy, the devil is probably in the details. We will take a closer look at what this entails for operators.
Licensees are required to provide a security deposit of €5 million in the form of an unlimited, directly enforceable bank guarantee from a credit institution resident in the
Why is Germany significant?
ISTG 2021 in focus
Germany has the largest consumer market in the European Union and has the potential to be the largest single market in the region for iGaming. Revenue for online gambling hit €2.2 billion in 2019, and forecasts suggested this would grow to €3.3 billion by 2024. Although land-based venues indicated a drop in earnings during 2021, the online sector, including sports betting, picked up the slack, with the industry as a whole growing. Some forecasts report the market could be worth as much as €18.2 billion by 2024.
There are separate policies for online gambling (which includes sports betting) and online casino games. For online gambling, a policy is set at a national level and although the regulatory framework is less restrictive than before, there are still stringent controls designed to protect players and prevent addiction. This includes limits on spin-stakes, ingame sports betting, and slot machines with the amount limited to €1000.00 per player per month across all platforms. The player must make a monthly deposit for this amount, and measures are in place to monitor operators. Online platforms that breach these rules may find themselves facing license withdrawal and other sanctions.
EU/EEA, plus they need to obtain all
The regulation (ISTG 2021) came into force on the 1st of July 2021, providing new licensing opportunities, together with new rules on advertising, licensing conditions, and tax rates. This was a major departure from the old system, which previously only allowed restricted elements of online gambling to a single state, Schleswig-Holstein. However, the rules and regulations have been and continue to be far from straightforward.
To obtain an operator's license, applicants must have a registered office in an EU member state, which, if not based in Germany, must appoint an authorized domestic representative who meets certain requirements. All ownership relationships
Some forecasts report the market could be worth as much as €18.2 billion by 2024
necessary insurance for the protection of players and submit annual reports to the competent authority pertaining to ongoing measures taken to detect gambling addiction.
