GERMANY Law and Practice Contributed by: Jörg Hofmann, Matthias Spitz and Michelle Hembury, Melchers
Melchers Im Breitspiel 21 69126 Heidelberg Germany
Tel: +49 062 211 850 141 Fax: +49 062 211 850 100 Email: gaming@melchers-law.com Web: www.melchers-law.com
1. Introduction 1.1 Current Outlook and Recent Changes On 1 July 2021, the new Interstate Treaty on Gam- bling 2021 (the “Interstate Treaty”) came into force in Germany and introduced the possibility of new licences for the online gambling market. Prior to the introduction of the treaty, the heads of all German fed- eral states had decided upon a transitional regime in order to assess market behaviour, but also to allow operators to enter the white market on a tolerance basis. However, this toleration regime has since come to an end. The joint gambling supervisory authority of the Ger- man federal states ( Gemeinsame Glücksspielbehörde der Länder – GGL) publishes a white list on its web- site, which is continuously updated. Only gambling operators listed on this white list are considered legal. A prerequisite for inclusion in the white list is the grant- ing of a gambling licence by the German regulator. Since 1 January 2023, the GGL has taken over from the Regional Council of Darmstadt and the Adminis- tration Office in Saxony-Anhalt. The Expansion of Licensable Forms of Gambling While sports betting continues to be licensable, oper- ators can now, for the first time, apply for licences to organise virtual slot-machine games and online poker in addition to organising and brokering sports betting. This marks a significant transition from the previous treaty-based regulatory regime (which pos- tulated a total ban on these games of chance) to the expansion of forms of gambling that can be licensed, especially on the internet. While online-casino gaming
licences are subject to numerical limitations, at least sports betting licences, virtual slot-machine licences and online poker licences have no such limitations. The aim is to increase the channelisation rate. At the time of writing, approximately 40 operators have been licensed for the slots and sportsbook operation. Since September 2024, five operators are licensed to offer online casino games (covering bank holder games – eg, roulette, blackjack, and live games) on the inter- net for customers in Schleswig-Holstein only. These licences were granted by way of public tender. Challenges With the above-mentioned as the main basis, opera- tors face numerous challenges throughout their licens- ing procedures and thereafter. These range from prac- tical issues concerning the various measures intended to protect players (deposit limits and their regulatory enforcement, security deposits and overall technical implementation of minor legal requirements, to name a few) to an opaque network of competencies and a new and unfavourable taxation law. Above all, sev- eral legal questions with regard to data protection law and overall compatibility with European law remain a structural predicament of the Interstate Treaty. Moreo- ver, the Interstate Treaty contains numerous new rules that are open to interpretation – eg, the permissible range of sports bets or advertising restrictions, as well as requirements for the increase of monthly deposit limits. Advertising Law Further regulatory changes have occurred in the field of advertising law, as each operator licence includes extensive ancillary provisions regarding permissible
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