2021 Interstate Gambling Treaty Implemented Across Germany
Discover exciting new opportunities for private online casinos, online poker, and sports betting operators with the introduction of IGT 2021. This regulation also brings in several restrictions on casino advertising.
What’s the Buzz?
IGT 2021 now allows private operators to apply for a gambling license across the entire country, valid for five years. However, they must first obtain permission from Federal States to offer virtual casino games, as these are classified under German laws and fall under the direct supervision of regional authorities.
The operators can still offer virtual slot machines, online poker, and sports betting options. The licensing process is very specific and covers six main points.
Different Sections for Different Operations
An operator must create separate sections on their website if they are offering multiple gambling options such as sports betting, virtual slots, etc. Players should not be able to access multiple options under a single section. Additionally, cross-advertising is not allowed between different gambling categories.
Monthly Deposit Limit
Players can only deposit a maximum of €1,000 per month across all platforms within the domain. This applies to all forms of online gambling, not just individual operators. In other words, 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 deposit while applying for a license. This amount can increase depending on the projected monthly revenue. The maximum deposit allowed is capped at €50 million.
Flexible Betting Limits
Punters can now place bets on game outcomes and in-play events. Live betting is also allowed under certain conditions.
Central Monitoring Authority
A central monitoring authority will be established in the coming months to ensure compliance with regulations. Providers must pay a fee to connect with the 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 Saxony-Anhalt gambling authority oversees the license application process and has laid down specific conditions:
- The application must be submitted in writing, apart from email communication. It must include a declaration of attached documents and estimated costs of verifying safety, economic efficiency, and social concepts.
- The applicant must submit all necessary documents as evidence while applying. These include:
- Voting rights and financial structure of the applicant
- Their authorized representatives
- A declaration of commitment to not host unlicensed gambling activities
- Administrative records, such as clearance certificates
- A declaration of completeness
- Operators established within the EEA and EU can apply for a gambling license. If the documents are not in German, the applicant must also submit a certified translation along with the original.
Tax Regime Update
IGT 2021 introduces new tax provisions. Taxes on online poker and video slots are now calculated based on money bet minus tax on virtual gaming machines (pending assessment). The money bet includes all expenses incurred by players during a gaming session, including participation fees and wagers made during gameplay.
The taxes have been increased to 5.3% from 5%, while everything else remains the same. However, this regime has faced criticism in the past for being too strict. Several member EU states believe that heavy taxes may hinder efforts to direct punters away from unregulated gambling platforms.