Germany: Licensing procedure for online gambling in Germany starts

Author: Live Casino Direct
 
Wild Casino

The Interstate Treaty on Gambling 2021 entered into force on 1 July 2021. It includes new licensing possibilities for sports betting, virtual slot machines, and online poker for private operators. There will also be a new (controversial) tax regime for these activities.

The new ISTG 2021 allows private operators to apply for licenses to offer sports betting, virtual slot machines, and online poker. Online casino games will be subject to separate laws of the individual federal states.

The application for a license to offer online sports betting, virtual slot machines and online poker is very similar. The applicant must provide a security deposit of at least EUR 5 million. A player can spend EUR 1,000 per month on all online gambling platforms. The authorities allow more flexibility in the case of online betting. There are also specific rules on KYC for players and exclusion of minors. As of the end of May 2021, technical guidelines for access to the “limit control database” and a central ‘exclusion system’ have been published.

The licensing procedure for online gambling in Germany starts. The applicant must provide a security deposit of at least EUR 5 million. In individual cases, this amount can be increased up to the amount of the expected monthly average turnover (maximum EUR 50 million). The operator must have an independent and graphically separate area for each form of gambling. A player must not play in different areas simultaneously. There is a monthly deposit limit of a maximum of EUR 1,000.00.

The gambling authority in the state of Saxony-Anhalt becomes the competent authority for the nationwide licensing process. The authority released the specific licensing conditions for virtual slot machines and online poker. Casino games, such as blackjack or roulette, are not covered by the licensing terms.

The licensing procedure for online gambling in Germany starts.

The application for online gambling in Germany needs to be written in writing and in addition electronically via mail or via electronic upload. It needs a declaration about the completeness of the documents and about costs for the verification of safety, social and economic efficiency concept.

The licensing procedure for online gambling in Germany starts. Only applicants established within the EU and EEA can apply for a license. If the required documents are not in German, it is necessary to provide a certified copy of the original and a translation.

The application for online gambling licence in Germany starts. The applicant must provide the necessary evidence and documents to support his application.

The application documents for online gambling in Germany start. The application details include the applicant's financial and voting rights structure, the application's authorized representatives and a declaration about the commitment not to offer any unlicensed gambling.

The applicant's financial and voting rights structure. The applicant’s authorized representatives. A declaration about the commitment not to offer any unlicensed gambling.

Documents for the examination of the applicant's capacity and submission of a profitability concept are required. The documents include evidence of sufficient resources held by the applicants and an independent auditor.

Documents to prove the transparency of the gambling operation. The documents shall include a safety concept, concepts with respect to payment, IT security, and money laundering.

The applicant must explain the distribution concept, technical processing of the application and the website. It should also be specified whether the applicant will offer advertisement via external providers or by itself.

The applicant must describe the relevant information about the offered games and their presentation to the gamers.

Further legal requirements exist, such as the obligation to provide a printout of the Terms & Conditions and the appointment of a data protection chief officer.

Licensing procedure for online gambling in Germany starts. Licensed operators will be allowed to advertise their offers according to the new rules of the ISTG 2021.

There are restrictions on gambling advertising. Most lotteries and certain forms of horse betting are exempt from the restrictions. Revenue share model advertising is prohibited. Advertising for virtual slot machine games, online poker and online casino games is also prohibited between 6 a.m. and 9 p.M. Live coverage of sporting events cannot be combined with advertising for sports betting on this sporting event. Active athletes and sports officials cannot also be used to advertise sports gambling. General sponsorship of sports teams will remain permissible.

The licensing procedure for online gambling in Germany starts. Most lotteries and certain forms of horse betting are exempt from the restrictions. Revenue share model advertising is prohibited. Advertising for virtual slot machine games, online poker and online casino games is also prohibited between 6 a.m. and 9 p.M.

New licensing regime will be accompanied by new tax provisions. Taxation for online poker and virtual slot machines will include all expenses incurred by the player to participate in the online game. For online Poker, the tax amounts to 5.3% of the assessment basis. Sports betting taxes will increase from 5% to 6%.

There is a licensing procedure for online gambling in Germany. Players are filing compensation claims against the providers. The available court decisions cause legal uncertainty. Some courts have ruled in favor of the players, others in favour of providers, as the player had willingly participated in the gambling offer.