For a long while, iGaming affiliates have been eagerly awaiting the arrival of the new Interstate Treaty on Gambling in Germany, which comes into force on July 1st. This allows operators to offer online slots and online poker at federal level, whilst other casino games may be offered at state level. Though this news may seem optimistic, there are still several obstacles in place that could prevent operators from fully capitalising on the regulated German online gambling market. So, before getting too excited, let’s discuss the key considerations that affiliates will need to review as the German market finally opens up.
With a newly regulated market comes new tax legislation. At the moment, the German government is debating how much to charge for online slots and online poker, with the proposed rate currently being 5.3 percent of turnover. According to gambling experts, this amount is financially unfeasible for operators. In addition to this, the Interstate Treaty on Gambling will prevent users from depositing more than €1,000 per month on all products, and they will be unable to stake over €1 on a spin for online slots. Industry experts are speculating that this could drive players to the clandestine market or provide land-based operators with an unfair advantage.
The Interstate Treaty on Gambling in Germany has also proposed new technical guidelines that affiliates must adhere to – or risk being fined up to €500,000. For example, age verification and player authentication systems will need to be in place. Major changes to websites may be required to ensure compliance with test systems. The German iGaming market is committed to anti-money laundering, additional security, safer gambling, responsible advertising, and better payment processing. Therefore, affiliate managers will need to be more rigorous when screening potential collaborators, so they can adhere to legislation and promote a better iGaming market overall. Doing the bare minimum simply won’t suffice for the Interstate Treaty on Gambling.
Affiliate managers should also consider the possibility that they will need to review their affiliate program terms and conditions before venturing into the regulated German gambling market. For example, changes will need to be made regarding their anti-money laundering policies and provisions for encouraging responsible gambling. Performing additional compliance checks on affiliates and content publishers will likely become a necessity, too. Furthermore, affiliate managers might have to alter their deal negations and commission modelling to accommodate these new regulations. Essentially, a lot is about to change. Preparing for these alterations with thorough reviews of policies, procedures, and clients should help to prepare affiliates for the Interstate Treaty on Gambling, though.
These are some of the key things to consider as the German iGaming market opens up. Affiliates have a lot of work to do between now and July 1st if they are planning on venturing into Germany’s new industry. Anybody in need of additional guidance can contact us today at AffiliateINSIDER. We provide our customers with training, advice, support, and more!