2021 Interstate Gambling Treaty Implemented Across Germany

Experience the excitement of new licensing opportunities for private online casinos, online poker, and sports betting with the introduction of IGT 2021. Along with these new options, there are also restrictions in place for casino advertising.

What’s Different?

The IGT 2021 allows private operators to apply for a gambling license across the entire country. This license will be valid for five years. However, operators must obtain permission from the Federal States to offer online casino games, as they are considered virtual simulations under German law and are directly supervised by regional authorities.

Operators can host virtual slot machines, online poker, and sports betting under this license. The licensing process is very specific and covers six primary points.

Different Sections for Different Operations

An operator must create separate sections on their website if they offer multiple gambling options such as sports betting, virtual slots, etc. Players should not have access to multiple gambling options within a single section. Additionally, cross-advertising between different options is not permitted.

Monthly Deposit Limit

Players can only deposit up to €1,000 per month across all domains. This limit applies to Online Gambling as a whole and not individual operators. This means that players can only invest up to €1,000 per month across all legal gambling platforms combined.

Security Deposit

Online operators must deposit €5 million as a security measure while applying for the license. This amount can increase based on projected monthly revenue, with a maximum cap of €50 million.

Flexible Betting Limits

Punters can now bet on the outcome of games and in-play events. Live bets are also allowed under certain conditions.

Establishment of Central Monitoring Authority

In the coming months, a central monitoring authority will be set up to address compliance issues. Providers must pay a fee to connect with this central database.

Minimum Spin Time for Slot Machines

Virtual slot machines must spin for at least five seconds before displaying results. Additionally, punters can only wager up to €1 per spin.

How to Apply for a Gambling License?

The gambling authority of Saxony-Anhalt oversees the license application process and has laid down the following conditions:

1. Format – The application must be submitted in writing, apart from email communication. It must include a declaration stating which documents are attached and an estimated cost for verifying safety, economic efficiency, and social concepts.
2. Required Documents – The applicant must submit all necessary documents as evidence while applying. These documents include:
   • Voting rights and financial structure information
   • A list of authorized representatives
   • A commitment to not host unlicensed gambling activities
   • Certificates of clearance from administrative records
   • A declaration of completeness
3. Limitations of Use – Operators established within the EEA and EU can apply for a gambling license. If any documents are not in German, the applicant must also submit a certified translation along with the original.

Tax Updates

The IGT 2021 introduces new tax provisions. Taxes for online poker and video slots are now calculated based on the money bet, minus taxes for virtual gaming machines (pending assessment). The money bet includes all expenses incurred by players during a gaming session, such as participation fees and wagers made during the game.

While taxes have increased from 5% to 5.3%, everything else remains the same. However, this regime has faced criticism in the past for being too strict. Some member EU states believe that these high taxes may discourage punters from switching to regulated gambling platforms and continue using unregulated ones.