Germany Agrees to Implement Transitional Period for Online Casino Operators

The German states have long been anticipating changes to the laws that govern local online casinos and virtual sports betting operators. According to the current draft circulating among the 16 states, these operators will have until July 2021 to continue serving the lucrative German market, as long as they adhere to strict guidelines.

The proposal, recently accepted by state representatives, covers the period between October 15, 2020 and July 1, 2021. After this, the Interstate Treaty (IT) will come into effect. This is a huge relief for operators who were concerned about their businesses being forced to shut down until the new legislation was put in place. This interim period can be compared to a “cooling-off” phase similar to what has been observed in neighboring Netherlands.

What Do These Interim Laws Mean for Online Sportsbooks and Casinos?

According to an official statement from authorities, operators will not face penalties as long as they follow the rules set out for them. The interim laws are currently being reviewed by the European Union and if passed, will introduce a new tax structure for online gambling. Additionally, a state-wide regulator may be appointed in Saxony-Anhalt – Germany’s eleventh most populous state and eighth largest in terms of area.

German operators have until October 15th to comply with these interim laws before no new permits will be granted. Failure to comply could also result in license revocation when the new rules take effect in July. While most major operators are expected to comply, the new laws may significantly impact revenue streams.

This has been a major point of conflict between online casinos and state authorities, leading to numerous discussions and debates in the past. While some federal states have advocated for liberalizing gambling laws, others hold different opinions. Some states have been vocal about implementing licensing policies for online poker operators and casinos, while others have called for an outright ban on such services.

Predictions for the Future

This treaty is seen as a fair compromise between various factions and is expected to satisfy all parties involved. Initial projections suggest that revenue from top online casinos could reach €50 million per month in the next year.

Online operators are allowed to offer multiple services like sports betting, iGaming, poker, and more using a single domain. However, there must be visually distinct sections separating each service. For example, someone visiting the online casino section should not be able to access sports betting through the same platform.

Players are also required to create separate accounts for each platform they wish to use. Operators must verify each account before allowing access. The current legislation does not specify how this verification process should be carried out but more details are expected in the coming months.

Authorities have also implemented a monthly spending limit of €1,000 per player across all platforms. This means that if a player deposits €600 with one operator, they will only have €400 left to use for the rest of the month when signing up with a second operator.