Germany Agrees to Implement Transitional Period for Online Casino Operators

The German states have long been preparing for a change in legislation that will govern local online casinos and virtual sports betting operators. According to the draft currently circulating among the 16 states, these operators will have until July 2021 to continue serving the lucrative German market, as long as they adhere to strict guidelines.

The proposal, recently accepted by state representatives, covers the period between October 15, 2020 and July 1, 2021. This is a huge relief for operators who feared their businesses would be forced to shut down while waiting for the new legislation to take effect. Similar to their counterparts in nearby Netherlands, there will be a cooling-off period observed.

What Do These Interim Laws Mean for Online Sportsbooks and Casinos?

In an official statement, authorities confirmed that operators will not face penalties as long as they comply with the rules. The interim laws are currently being processed by the European Union and if passed, they will introduce new tax structures for online gambling, as well as establish a state-wide regulator – likely based in Saxony-Anhalt – Germany’s 11th most populous state and 8th largest in terms of area.

Operators have until October 15th to comply with these interim laws before no new permits will be granted. Additionally, operators may risk having their licenses revoked when the new rules take effect in July. While major operators are expected to comply with these laws, it will significantly reduce their revenue streams.

This was a major point of contention between online casinos and state authorities, leading to numerous discussions and debates in the past. While some federal states believed in liberalizing gambling, others had different opinions. Some states advocated for licensing policies for online poker operators and casinos, while others favored banning these services altogether.

Projections for the Future

This treaty represents a healthy compromise between the various factions involved and is expected to satisfy all parties. Initial projections estimate that top online casinos will generate around €50 million per month in revenue next year.

Online operators can offer multiple services such as sports betting, iGaming, poker, and more using a single domain. However, each service must be graphically separated into its own section. For example, a person visiting the online casino section should not have access to sports betting through the same platform.

Players are also required to create individual accounts for each platform they use and operators must verify each account before allowing access. The current legislation does not specify how this verification process should be carried out but more details are expected in the coming months.

The authorities have also set a hard cap of €1,000 per month per player across all platforms. This means if a player deposits €600 with one operator, they will only have €400 left for the rest of the month when signing up with another operator.