Germany Agrees to Implement Transitional Period for Online Casino Operators

After months of preparation, German states are finally seeing a change in legislation for local online casinos and virtual sports betting operators. A draft is currently circulating among the 16 states, giving operators until July 2021 to continue serving the lucrative German market as long as they follow strict guidelines.

State representatives recently accepted the proposal, which covers the period between October 15, 2020 and July 1, 2021. This comes as a huge relief for operators who were worried about their businesses shutting down until the new legislation was in effect. Similar to their counterparts in nearby Netherlands, there will be a “cooling-off” period for operators.

The Impact of Interim Laws on Online Sportsbooks and Casinos

In an official statement, authorities confirmed that operators will not be penalized if they adhere to the rules laid out. The interim laws are currently being reviewed by the European Union and if passed, will introduce a new tax structure for online gambling. It also plans to establish a state-wide regulator based in Saxony-Anhalt, Germany’s 11th largest state by population and 8th largest in terms of area.

Operators have until October 15 to comply with these interim laws before no new permits are granted. They could also risk losing their licenses when the new rules take effect in July. While most major operators are expected to comply, these laws will significantly impact revenue streams.

This has been a major point of conflict between online casinos and state authorities, leading to numerous discussions and debates. While some federal states believe gambling should be liberalized, others have a different opinion. Some states advocate for licensing policies for online poker operators and casinos, while others support an outright ban.

Predictions for the Future

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

Online operators can offer multiple services such as sports betting, iGaming, poker, etc. under one domain. However, each service must have its own separate section with distinct graphics. For example, players accessing the online casino section cannot access sports betting using the same platform.

Players must also create separate accounts for each platform and operators must verify every account before allowing access. The current legislation does not specify how these credentials should be verified, but more details are expected in the coming months.

Authorities have set a monthly cap of €1,000 per player across all platforms. This means if a player deposits €600 with one operator, they will only have €400 left for other platforms during that month.