GERMANY Law and Practice Contributed by: Jörg Hofmann, Matthias Spitz and Michelle Hembury, Melchers
Other State Regulators Certain states have assumed the role of a centrally responsible regulator for clearly defined areas of the law. Since the states are primarily responsible for regulat- ing retail gambling or such offerings that do not cross state borders, the majority of licensing, supervisory and enforcement powers are vested in regulatory authorities at state level. Most key responsibilities are assigned to the Ministries or Senates of the Interior, which may employ lower authorities to act on their behalf. Those responsibilities comprise the licensing and supervision of land-based casinos, and co-ordi- nating enforcement actions against suspected unlaw- ful gambling operators. 4.2 Regulatory Approach The regulatory approach in Germany aims to: • prevent gambling addiction; • ensure the protection of minors and players; • ensure fairness; • channel players towards licensed offerings, to combat the black market and crimes related to gambling; and • ensure the integrity of sport. The means envisaged by the Interstate Treaty for achieving these objectives are as follows. • a state monopoly on lotteries; • licensing opportunities in selected areas such as sports betting, online poker and virtual slot games; and • player protection measures, including: • the range of permissible sports bets; • the deposit limit database and activity database (LUGAS); • an exclusion database (OASIS); and • deposit limits in online poker, sports betting and virtual slot games. 4.3 Types of Licences Licences are only available for certain products, such as sports betting, online poker and virtual slot games; other licences, including the licence to operate lotter- ies, may not be issued to private operators. Unless a
licence is issued by a centrally responsible regulator, licences will be issued on a state-by-state basis and will only take effect in the state or in relation to the premises for which they are issued. German licences will always be issued to B2C companies. There is no B2B licensing system. 4.4 Availability of Licences The following licences are available for private opera- tors: • online/land-based sports betting; • online poker; • virtual slot games; • land-based casino gaming, including retail poker (but only in certain states); • land-based and online horse race betting book- maker licences/licences pursuant to Section 27 (2) of the Interstate Treaty; • land-based slot-machine gaming in gaming halls or restaurants and bars; • land-based and online brokerage of state lottery products; and • small-scale/charitable lotteries (traditional lotteries are subject to a state monopoly). 4.5 Duration of Licences The duration of available licences varies depending on the product in question and the licence conditions, which are often determined by state laws. Under the Interstate Treaty Sports betting licences that were issued under the former Interstate Treaty had a licence term until 30 June 2021. The Interstate Treaty stipulated that these licences were further extended by virtue of the law until 31 December 2022. Almost all licences were renewed before they expired. The new licence period is five years. Exceptions, however, may be made by the regulator in cases where they find a shorter licence term necessary or more suitable. Sports betting, online poker and virtual slot games licences, granted since the Interstate Treaty came into being, have a duration of five years. Licence renewals have a term of seven years. These are expected to be issued as of 2027.
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