Germany submits gambling legislation to the European courts

Germany European Commission Gambling

Germany has submitted the revised fourth edition of its fourth gambling State Treaty to the European Commission

13 of the country’s 16 states (Länder) still need to ratify the legislation before 31st March 2021, in order for it to come into force. 

Should the above happen, states will adhere to its terms until 31st December 2028. From the beginning of 2029, they will be able to withdraw from the Treaty – as long as they provide a year’s notice. 

Reaction from industry stakeholders towards the legislation’s existing proposed terms have been largely negative, due to the inclusion of numerous restrictions. 

What happens if the legislation clears all of its hurdles? 

If the Treaty is approved by 13 states and the Commission ratifies its terms, there would be a one-year licensing window from the date it comes into play. This would therefore be 1st July 2022, since it’s expected to be implemented from 1st July 2021. 

Rather than a fixed amount for all, operator licence fees will be based on projections for the amount that is expected to be wagered with them. If said brands have a turnover of up to €40 million, they’ll have to pay at least 2% of stakes of at least €100. 

Operators with stakes from €40 million – €65 million will have to pay €80,000, in addition to 1.6% of stakes that surpass €40 million. The fee rises to €120,000 for operators with projected stakes between €65 million and €130 million (plus 1% of turnover exceeding €65 million). 

For operators that handle more than €130 million in bets, the fee will be €185,000 plus 0.6% of stakes surpassing €130 million. 

Treaty unpopular with numerous industry members 

Individuals throughout the gambling industry have criticised the restrictions of the Treaty’s current draft. Players will be tied to €1,000 maximum monthly deposit limits, as well as a €1 limit for online slot wagers. 

The European Commission has already rejected one version of the Treaty’s sports betting technical provisions. They believed that it failed to meet EU requirements. 

In particular, the Commission warned about the monthly deposit limits and restrictions on in-play betting. They were also critical about terminating online casino services, though that particular area has been amended in the most-recent draft. 

Affiliate marketing would also be near-impossible, due to various restrictions in this respect.