Germany Agrees to Implement Transitional Period for Online Casino Operators

The German government has been preparing for a change in legislation regarding local online casinos and virtual sports betting operators. According to the current draft circulating among the 16 German states, operators have until July 2021 to continue serving the lucrative German market, as long as they adhere to strict guidelines.

This proposal, recently accepted by state representatives, covers the time period between October 15, 2020 and July 1, 2021. After this date, the Interstate Treaty (IT) will go into effect. This is a huge relief for operators who were concerned about their businesses being shut down until the new legislation was in place. Similar to their counterparts in neighboring Netherlands who also had a “cooling-off” period.

Interim Laws and Their Impact on Online Sportsbooks and Casinos

In an official statement, authorities have confirmed that operators will not be penalized as long as they comply with the rules set forth. These interim laws are currently being processed by the European Union. If passed, they will introduce a new tax structure for online gambling, as well as appointing a state-wide regulator – potentially based in Saxony-Anhalt – Germany’s eleventh most populous state and eighth largest in terms of area.

German operators have until October 15th to comply with these interim laws or risk not receiving any new permits. Additionally, their licenses may be revoked when the new regulations take effect in July. While most major operators are expected to comply with these laws, it could significantly reduce revenue streams.

This has been a major point of contention between online casinos and state authorities, leading to numerous discussions and debates. Some federal states believe gambling should be liberalized, while others have differing opinions. Some states are in favor of introducing licensing policies for online poker operators and casinos, while others want to outright ban these services.

The Future Outlook

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

Online operators are allowed to offer multiple services such as sports betting, iGaming, poker, etc. under a single domain. However, each service must have its own visually distinct section. For example, someone visiting the online casino section should not be able to access sports betting through the same platform.

Players must also create separate accounts for each platform and operators are required to verify every account before granting access. The current legislation does not specify how this verification process should be carried out. More details will likely be provided in the coming months.

The authorities have also set a limit of €1,000 per month per player across all platforms – meaning if a player deposits €600 with one operator, they will only have €400 left for the rest of the month if they sign up with another operator.