Once again, online gambling legislation in Germany has come under fire, and the lack of speed at which the implementation of a resolution is being addressed has been highlighted. Saxony-Anhalt Finance Minister André Schröder has warned that Germany’s efforts to legalize online gambling could fail if the 16 individual states do not act quickly and implement the proposed Interstate Treaty.
German legislators first introduced the treaty in 2012 in an effort to create a safe, regulated environment for the country’s gamblers. The treaty allows for licensed online sports betting services and casinos to operate, but caps the number of licenses at 20, limiting it somewhat. This provision was contested by the European Union’s Court of Justice on the premise that the license cap prevented the free movement of services between the European Union member states.
Issuance of Licenses Plunged into Chaos
In 2014 the first licenses were issued, however a number of big name applicants were unsuccessful, and this prompted the launching of a legal suit against the new legislation. Tipico, Betclic Everest and bet365 were just a few of the brands refused licenses, and when they joined in challenging the online gambling legislation they won their case, and German states were plunged into limbo once more.
In March 2017 a subsequent regulatory amendment saw the license cap increase from 20 to 40, and 35 international operators expressed interest in entering the DE market. Brands like Lucky Nugget Casino Canada that are already well established may well be in line to add their name to the interested parties list too, and other big name brands are sure to follow.
Schröder has now weighed in on the fact that the legislation seems to be slow in getting off the ground, as does the issuing of new licenses. He has said that the Prime Ministers of all the federal states have agreed on the changes to the gaming contract, and that it was a struggle and a process to get everyone to do so. He feels that the problems posed by the legislation have now been cleared up and that the current regulations will not be hard to enforce, and will ensure consumer protection at both online casinos and sports betting sites.
He added that Saxony-Anhalt was in favour of the agreement and that it was now essential to ensure ratification and get the ball rolling. As the spotlight falls on gambling laws across the globe, Germany should be setting an example, and has the power to change and regulate the industry for the better.
Pushing to Pass Online Gambling Legislation
In order to see the Interstate Gaming Treaty passed all of the 16 states must approve and take up the online gambling legislation by the 1st of January 2018. Schröder is concerned that is states do not act fast the treaty may become defunct, and is calling on them to ratify and implement the legislation well before the cut off date. If the ratification fails in even one state, the entire treaty will become null and void, and the current regulations would remain in place. Execution problems would then persist, and Germany may well lose out on valuable revenue and market share in an increasingly competitive environment.
Leader of the German Lotto and Toto Block (DLTB), Torsten Meinberg agreed with Schröder’s call to action and said that speedy action was essential, and the time to act was now.
