GERMANY Law and Practice Contributed by: Jörg Hofmann, Matthias Spitz and Michelle Hembury, Melchers
Land-Based Casino Licences In the land-based casino sector, the average licence term is ten to 15 years. Often, there will be an option to extend licences for another five years. 4.6 Application Requirements An overarching requirement is that the applicant entity and its representatives are “reliable”, meaning that they are expected to demonstrate that they are capa- ble of operating a licensed business in compliance with the regulations. Certain documentation – eg, criminal records, certificates of good conduct, con- firmations regarding tax compliance and other com- mercial records – will need to be provided for that purpose. This includes excerpts from corporate reg- isters and disclosing relevant shareholders. Disclosure thresholds, however, are not always clearly defined and vary depending on the specific licensing process. Furthermore, certain key staff will need to prove their expertise in the respective field by submitting CVs, certificates and other qualifications. Another common aspect in all German licence appli- cation procedures is that operators will be asked to submit so-called concepts, which are essentially com- pany policies describing how the applicant intends to conduct its future business under the licence. Key policies include: • details on how to ensure responsible gambling and IT security; • a business and marketing plan; • a payment-processing concept; and • an AML concept. 4.7 Application Timing The application timing varies depending on the licens- ing process in question, the number of staff available to review applications and other factors. The issuance of licences will, for example, be delayed or even pre- vented if the licensing process is not designed and conducted in a lawful manner. This occurred in rela- tion to the sports betting licensing process that was initiated under the Interstate Treaty in 2012. Under the former Interstate Treaty, the granting of licences was again delayed, as it was suspended by court order.
Based on experience, land-based casino application proceedings tend to take between six and 18 months. The duration of the licensing process for gaming halls/ amusement arcades is generally a matter of weeks or a few months. The issuance of sports betting licenc- es under the former Interstate Treaty took about six to nine months. Even under the regime of the new Interstate Treaty, the licensing process usually takes several months. 4.8 Application Fees Application (or, rather, licensing) fees vary depending on the licensing process in question, but will usually depend on projected turnover. In addition, certain state laws on fee calculations can apply. 4.9 Ongoing Annual Fees Ongoing annual fees vary depending on the licence in question, as well as on the state laws on the calcula- tion of administrative fees applicable in the state issu- ing the licence. There will usually be different types of administrative actions that take into account the time spent on the part of the authority undertaking the supervision. 4.10 Personal Licensing The German gambling law does not foresee the issu- ance of personal licences. Further, it would not require these for obtaining operator licences – given that part of the application process for such licences already involves assessing the representatives of the appli- cant entities for commercial reliability. 5. Land-Based Gambling 5.1 Premises Licensing Land-based gambling includes: • slot machines in gaming halls, bars and restau- rants;
• gambling in land-based casinos; • horse-race betting at racecourses; • sports betting in local premises; and • lottery brokers.
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