2021 Interstate Gambling Treaty Implemented Across Germany

Discover the exciting changes introduced by the latest regulation from IGT 2021. This update brings new opportunities for private online casinos, online poker, and sports betting operators. However, it also enforces strict restrictions on casino advertising.

What’s in Store?

The IGT 2021 grants private operators the ability to obtain a gambling license nationwide for a period of five years. However, these operators must seek approval from the Federal States to offer virtual casino games, as they fall under German laws and are directly supervised by regional authorities.

But fear not, as these operators can still offer virtual slot machines, online poker, and sports betting. The licensing process is thorough and covers six key points.

Different Sections for Different Activities

Monthly Deposit Limit

To promote responsible gambling habits, players are only allowed to deposit up to €1,000 per month across all domains. This limit applies to online gambling as a whole and not individual operators. In other words,
each player can only invest €1,000 per month across all legal gambling platforms combined.

Safety Deposit

When applying for a license, online operators must deposit €5 million as security. Depending on projected revenue, this amount can increase but is capped at €50 million. This ensures player safety and fair gaming practices.

Flexible Betting Limits

Punters can now place bets on the outcome of a game or in-play events. Live betting is also allowed under certain conditions.

Central Monitoring Authority

To ensure compliance, a central monitoring authority will be established in the coming months. 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 are limited to wagering no more than €1 per spin.

How to Obtain a Gambling License?

The gambling authority of Saxony-Anhalt oversees the license application process and has set forth the following requirements:

1. The application must be submitted in writing, along with email communication. It should also include a declaration of attached documents and estimated costs for verifying safety, economic efficiency, and social concepts.
2. The applicant must provide all necessary documents as evidence when applying.
   This includes:
• The applicant’s financial structure and voting rights;
• Their authorized representatives;
• A commitment to not offer unlicensed gambling;
• Administrative records such as clearance certificates;
• A declaration of completeness.
3. Operators established within the EEA and EU are eligible for a gambling license. If documents are not in German, a certified translation must be submitted with the original.

Updated Tax System

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

While taxes have been raised from 5% to 5.3%, everything else remains unchanged. However, this strict regime has faced criticism in the past for potentially deterring punters from regulated platforms due to high taxes.