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The agreement on the removal of the limit to German sportsbetting licenses and the potential award of casino licenses might open new opportunities in the country.
This is a very interesting update on upcoming developments in Germany from my colleaguesย Michael Stulz-Herrnstadt andย Christoph Engelmann. I hope you will enjoy it!
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Last week the German prime ministers reached an agreementย on the amendment of the German State Treaty on Gambling (GlueStV). They decided to cancel the limitation of concessions for sports betting. With the 2012 GlueStV the German states wanted to allow up to 20 licenses for private sports betting operators. However, none of the licenses has been issued.
This led to criticism by the European Court of Justiceย (ECJ)ย and court decisions that even ordered the gambling authorities to issue sports betting licenses for operators. In the future the concessions shall not be limited to the amount of 20 but be assigned on the basis of minimum standards.
Additionally, the prime ministers ask the gambling authorities to consider the possibilities of improving the enforcement against illegal online gambling (especially unlicensed lotteries, sports betting and online casino games) possibly by founding a public-law institution with centralised responsibility.
While evaluating the GlueStV the authorities shall also consider the simplification of identification and authentication of players and the substitution of the monthly stake-limit of โฌ 1,000 with a loss-limit in the same amount.
At last, the prime ministers ask the gambling authorities to examine which regulatory measures could improve the regulation of online casinos considering the experience in other European countries. This decision hints in the direction that even licensing of online casinos might be possible in the future.
However, this is just the first decision of the prime ministers. After the criticism by the ECJ a new gambling regulation is needed in Germany and this decision of the prime ministers will hopefully lead to an amendment of the GlueStV in the near future. While the prime ministers of the 16 German states are discussing those amendments the authorities are working on a process to align the sports betting regulation with EU law. They reached an agreement to give out orders of approval for sports betting operators in the meantime. These orders allow (online) sports betting in Germany if certain requirements are met. However, the operator needs an order of approval in every single German state and not every state has an approval process in place.