Germany Agrees to Implement Transitional Period for Online Casino Operators

The German states have long been preparing for changes to the legislation governing local online casinos and virtual sports betting operators. According to a recent proposal accepted by state representatives, operators have until July 2021 to continue serving the lucrative German market, as long as they comply with strict guidelines.

The draft, currently circulating among the 16 German states, covers the period between October 15, 2020 and July 1, 2021. This is a huge relief for operators who were concerned their businesses would shut down until the new legislation took effect. Similar to their counterparts in nearby Netherlands, this interim period allows for a “cooling-off” period.

What Does This Mean for Online Sportsbooks and Casinos?

The authorities have confirmed that operators will not be penalized as long as they adhere to the laid out rules. The interim laws are currently being processed by the European Union and if passed, will introduce a new tax structure on online gambling, as well as appointing a state-wide regulator – possibly based in Saxony-Anhalt, Germany’s 11th most populous state and 8th largest in terms of area.

Operators must comply with these interim laws by October 15 or risk not being granted new permits. Additionally, their licenses could be revoked once the new rules take effect in July. While most major operators are expected to comply, these new laws will significantly impact revenue streams.

This has been a major point of contention between online casinos and state authorities, leading to numerous discussions and debates in the past. While some federal states believe gambling should be liberalized, others have a different stance. Some states have been vocal about introducing licensing policies for online poker operators and casinos, while others favor an outright ban on such services.

What Does the Future Hold?

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

Online operators can offer multiple services such as sports betting, iGaming, poker, and more using a single domain. However, each service must be visually separated into distinct sections. For example, someone visiting the online casino section should not be able to access sports betting using the same platform.

Players must also create separate accounts for each platform they wish to use, with operators required to verify each account before allowing access. The current legislation does not specify how these credentials must be verified – more details are likely to be released in the coming months.

The authorities have also set 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 for any other platforms during that month.