2021 Interstate Gambling Treaty Implemented Across Germany

Discover exciting new licensing opportunities for private online casinos, online poker, and sports betting operators with the implementation of IGT 2021. This regulation also includes several restrictions on casino advertising.

What’s Different?

Under IGT 2021, private operators can now apply for a gambling license across the entire country. The license will be valid for five years and requires permission from Federal States to offer virtual casino games, as they fall under German laws and are monitored by regional authorities.

However, virtual slot machines, online poker, and sports betting are allowed without seeking permission. The licensing process is very specific and covers six key points.

Dedicated Sections for Different Operations

An operator must create separate sections on their website if they offer multiple forms of gambling such as sports betting, virtual slots, etc. Players should not have access to multiple forms of gambling within one section. Cross-advertising is also prohibited.

Limited Monthly Deposits

Players can only deposit up to €1,000 per month across all legal gambling platforms combined. This applies to all forms of online gambling, not just individual operators. Essentially, players can only invest €1,000 per month in any legal platform.

Mandatory Security Deposit

In order to apply for a license, online operators must deposit €5 million as security. This amount may increase depending on projected monthly revenue, with the maximum deposit capped at €50 million.

Flexible Betting Limits

Under IGT 2021, players can now place bets on the outcome of a game and participate in live betting events, with certain conditions.

Central Monitoring Authority

A central monitoring authority will be established in the coming months to ensure compliance. 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, players are limited to a maximum bet of €1 per spin.

How to Apply for a Gambling License?

The gambling authority of Saxony-Anhalt oversees the license application process and requires applicants to meet certain conditions:

1. The application must be submitted in writing (excluding email communication) and include a declaration of attached documents and estimated costs for verifying safety, economic efficiency, and social concepts.
2. All necessary documents (such as voting rights, financial structure, authorized representatives) must be submitted as evidence.
   • Voting rights and financial structure
   • Authorized representatives
   • A commitment to not host unlicensed gambling
   • Certified administrative records
   • A declaration of completeness

3. The applicant’s company or organization must be located within EEA or EU regions. If any documents are not in German, they must also provide certified translations along with original copies.

New Tax Regulations

The implementation of IGT 2021 also includes new tax provisions. Taxes on online poker and video slots are now calculated based on the amount bet (minus the 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 increased to 5.3% from 5%, everything else remains the same. However, this strict regime has received criticism in the past and some EU member states believe it may hinder efforts to redirect players away from unregulated gambling platforms due to high taxes.