2021 Interstate Gambling Treaty Implemented Across Germany

The new regulation presents exciting opportunities for private online casinos, online poker, and sports betting operators. IGT 2021 has also implemented several restrictions on casino advertising.

What’s Changed?

Under IGT 2021, private operators can now apply for a gambling license across the country. The license is valid for five years and must be approved by the Federal States in order to offer online casino games. This falls under virtual simulation in German laws and is supervised by regional authorities.

However, operators are permitted to offer virtual slot machines, online poker, and sports betting. The licensing process follows six key points.

Different Sections for Different Operations

An operator must create separate sections on their website if they offer multiple gambling options such as sports betting, virtual slots, and more. Players should not be able to access multiple gambling options within a single section. Additionally, operators are not allowed to cross-advertise.

Monthly Deposit Limit

Players are limited to depositing €1,000 per month across the entire domain. This limit applies to online gambling as a whole and not individual operators. This means that players can only invest €1,000 per month on all legal gambling platforms combined.

Security Deposit

Online operators must deposit €5 million as security when applying for a license. This amount may increase depending on projected monthly revenue, with the maximum deposit capped at €50 million.

Flexible Betting Limits

Punters can now place bets on game outcomes and in-play events. Live bets are also allowed under certain conditions.

Central Monitoring Authority

A central monitoring authority will be established in the coming months to ensure compliance. Providers must pay a fee to connect with the central database.

Minimum Spin Time for Slot Machines

Virtual slot machines must spin for at least five seconds before displaying results. Meanwhile, players can only wager €1 per spin.

How to Apply for a Gambling License?

The gambling authority of Saxony-Anhalt is responsible for overseeing the application process, which has the following conditions:

1. Application Format – The application must be submitted in writing, in addition to email communication. It should include a declaration about attached documents and estimated costs of verifying safety, economic efficiency, and social concepts.
2. Required Documents – The applicant must provide all necessary documents as evidence during the application process. These documents include:
• Voting rights and financial structure of the applicant
• Authorized representatives of the applicant
• A commitment to not host unlicensed gambling activities
• Administrative records, such as clearance certificates
• A declaration of completeness
3. Limitations on Use – Operators established within the EEA and EU are eligible to apply for a gambling license. If the documents are not in German, the applicant must also provide a certified translation along with the original.

Updated Tax System

IGT 2021 has introduced new tax regulations. Taxes on online poker and video slots are now calculated based on the money wagered minus tax on virtual gaming machines (pending assessment). The money wagered includes all expenses incurred by the player during a gaming session, such as participation fees and bets made during gameplay.

The taxes have been raised from 5% to 5.3%, while everything else remains unchanged. However, this system has been criticized in the past for being too strict, with some EU member states believing that it may discourage players from using regulated gambling platforms due to high taxes.