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Germany’s New State Treaty on Gambling Criticized by the European Commission

29 August 2019, 09:12
Votes: 1

The third amended State Treaty on Gambling in Germany raises questions of its advisability among the European Commission’s representatives.

Germany’s New State Treaty on Gambling Criticized by the European Commission

This gambling legislation has been under consideration in the Commission since May but is yet to be approved by the governing body. According to its general director Lowri Evans, the Treaty’s effectiveness is questionable due to its short-term nature (only 18 months).

The legislation that will be valid from January 1, 2020, to June 30, 2021 will require from sports betting operators to shut down their business related to online casinos in order to obtain a license. In addition, the government will impose restrictions on the amount of money players can spend per month (€1000), as well as levy a 5% tax on licensees’ turnover. These innovations will result in significant losses for sportsbooks in case of being enforced. 

Mr. Evans is doubtful whether such measures yield the desired results, which are increasing player protection and getting rid of unlicensed operators in Germany. However, new restrictions could scare off legal operators and investors from the market – not what the regulator wants to achieve.

The Commission’s general director emphasized that since the first Treaty’s implementation in 2012 the situation had not changed and the desired goals had not been achieved. Therefore, he asked the German authorities to clarify how this new gambling legislation would help to improve the situation in its domestic sports betting market.

As mentioned earlier, Swedish authorities continue to combat underage sports betting in the country.

Read more: Online Gambling Licenses in the European Union

Read more: Sports Margins as the Key Indicator in Gaming Revenues Growth

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