German Transitional Period for Casinos
Before the new law was implemented in July 2021, German federal states signed an agreement to allow online casino games on a provisional basis, providing that the players complied with the new regulatory system. the deadline to meet with the coming new gaming regulations is October 15.
According to sources in the German press, the Minister-Presidents of the 16 federal states, facing some resistance, decided not to take legal action against online slots already being sold on the uncontrolled market, an amnesty proposal initially put forward in July.
From Regulation To Accommodation
The Darmstadt Regional Council had a prohibition order contested in court and blocked by the regulator under the Third Amendment of the State Treaty on Gambling, effectively forcing it to rethink its strategy and shift towards accommodation rather than compliance.
Online businesses now working in the uncontrolled market would have to enforce the actions provided in the Fourth Amendment relating to consumer safety rules and gaming abuse prevention initiatives. By mid-October, both operators will now be required to comply with the regulation which will take effect on each vertical from 1 July 2021.
New Gaming Limits
Internet slots will need to enforce a €1 per spin stake limit during the so-called transitional phase and online table games such as blackjack and roulette will not be allowed. Table games are to be sold separately from slot gaming and each state can opt to award a monopoly on this vertical to the state lottery.
The wide €1,000 monthly spending cap will be extended to all players, but operators will have the option of raising the limit to €10,000 for players who request it, providing that the player has a maximum bet sum and a special loss limit of 20% of the maximum spending is imposed.
Operators will now be able to raise the budget limit on each of their players between between €10,000 and €30,000, up to 1% of their reported sum. All players must be 21 y.o. or older, and must be subject to additional due diligence and follow-up supervision.
Operators who break all of these conditions will have their provisional operational permit revoked and most likely barred next year from acquiring a licence.
It was not easy for the states to find an understanding, as some of them, Saarland, Saxony-Anhalt and Bremen, argued that operators providing German players online casinos should also be investigated and shut down before the controlled market goes live. They argued that a waiting period would be at the detriment of consumer security which would cause problems in implementing a decision if the forthcoming regulation is not adopted while the European Commission is currently reviewing it.
The decision to accept online gaming before the current regulatory system comes into effect has drawn opposition from problem gambling organisations in the region. The chairman of the national gambling addiction advisory board, Hans-Jürgen Rumpf, has described the arrangement as a "free ticket for illegal providers" who are now being compensated for having existed in the unregulated market for too long.
Obtaining new licences for operators takes time, but most of them are going to make changes according to new statement.
