German Gambling Regulations in 2021 – Who Will Benefit?

Big changes seem to come up in Germany since the country is ready to implement the so-called German Interstate Treaty on Gambling (ISTG 2021). Most of the states are already agreed to the new regulations posed by the treaty, but we still have to wait the rest out. Here is what is going to change, once they finalize the framework.

When it comes to gambling, we can say that Germany is a little bit like the US and its 50 unique states. Germany has 16 states, and all of them have their own variations of gambling laws – which can be a little bit confusing. This is what the new regulatory framework tries to leave behind to form a single federal gambling regulation. This process has not been easy – either for the states, either for the government. But when the German gambling regulations pass, probably in 2021, this field will be much smoother than before.

The German Interstate Treaty on Gambling 2021

The German federal states agreed on the new framework regulatory treaty in Germany, ISTG 2021 in March 2020. It should come into force on July 1. They also submitted it to the European Union – just as a notification. To get to this point, it took years of legal uncertainties, countless court proceedings, and conflicts between state regulators. So, it is a pretty big deal that now, 13 of the 16 states already agreed on the new ruling. But what do the German gambling regulations in 2021 mean for players and online gambling sites in Germany, like Whamoo Casino?

According to mondaq.com’s collection, the German gambling regulations in 2021 will cover the whole market. “Probably the most relevant change concerns the liberalization of the online gambling market through a licensing process. The law provides for a proceeding to obtain a license to offer online sports betting, virtual slot machines (online simulations of a terrestrial slot machine), and online poker. Licenses will endure for a period of five years. The regulation does not include online casino games. These are defined as virtual simulations of casino games (such as Black Jack and Roulette) and live broadcasts of terrestrially conducted casino games with the possibility of participation via the internet. The possibility of obtaining a license for online casino games will be subject to separate laws of the individual federal states. Likely, the legislators will model the laws on the specifications for a license to operate a land-based casino.”

To get a license to be able to offer sports betting, operators will have to cover some requirements. Click here to see those.

In transition

Germany needed 13 states from 16 to sign off the ISTG so that it could go to ratification. Lucky for them, they could do it when they first presented it. And for now, it is only Sachsen-Anhalt, Nordrhein-Westfalen, and Saarland that have not agreed to and signed it yet. But it is not that big of a problem, since there is still a transition period. They came up with this idea because some gaming activities should be implemented before full ratification. So, by this, they gave some time for the online sportsbook sites in Germany and every other operator to do what they have to do. And with this period-theory, the acceptance from regulators was much easier.

Benefits for Germany

There is still one topic that they have not cleared in connection with the ISTG 2021, which is about taxes. How much should gaming operators, like Whamoo Casino pay? Well, this is still yet to be decided. The country could see a rise in that matter – but only if they do not overtax them. The latter would lead to increased black market activity. Last, but not least, by the German Gambling Regulations in 2021, the country will also be able to control gaming licenses and oversee operators. This will lead to improved consumer protection: they already began to address problem gambling and player safety. But with the framework regulatory, it will be much easier to do so.

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