2021 Interstate Gambling Treaty Implemented Across Germany

2021 Interstate Gambling Treaty Implemented Across Germany

July 27, 2021

The regulation introduces new licensing possibilities for private online casinos, online poker, and sports betting operators. IGT 2021 has also introduced several restrictions on casino advertising.

What’s New?

IGT 2021 allows private operators to apply for a gambling license across the country. The license will be valid for five years. However, the operators must seek permission from the Federal States to offer online casino games as it’s classified as virtual simulation under German laws and is under the direct supervision of the regional authorities.

The operators, however, can host virtual slot machines, online poker, and sports betting. The licensing process is very specific and covers six primary points.

Independent Sections for Different Operations

An operator must create independent sections on the website if they’re offering multiple gambling options like sports betting, virtual slots, and more. Players shouldn’t be able to access multiple gambling options under a single section. Moreover, the operators aren’t allowed to cross-advertise.

Monthly Deposit Cap

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

Security Deposit

Online operators must deposit €5 million as security while applying for the license. The amount can increase depending on the projected revenue per month. The maximum deposit is capped at €50 million.

Flexible Online Betting Limits

Punters can now wager on the outcome of a game and in-play events. Live bets are also allowed under certain conditions.

Setting Up a Central Monitoring Authority

A central monitoring authority will be set up in the coming months to address compliance issues. 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 the results are displayed. Meanwhile, punters can only wager €1 per spin.

How to Apply for a Gambling License?

The gambling authority of Saxony-Anhalt is in charge of overseeing the license application process. And they’ve laid down the following conditions.

  1. Format – The application must be handed over in writing apart from email communication. It must include a declaration about the documents attached and the assumed costs of verifying the safety, economic efficiency, and social concepts.
  2. Documents Required – The applicant must submit all necessary documents as evidence while applying. The paperwork must include the following:

  • The applicant’s voting rights and financial structure
  • Their authorized representatives
  • Declaration of commitment to not host unlicensed gambling
  • Administrative records like clearance certificates
  • Declaration of completeness

  1. Limitations of Use – Operators established within the EEA and EU can apply for a gambling license. If the documents aren’t in German, the applicant must also submit a certified translation along with the original.

Updated Tax Regime

IGT 2021 introduces new tax provisions. Taxes on online poker and video slots are now calculated on the money bet minus the tax on virtual gaming machines (pending assessment). The money bet comprises every expense incurred by the player during a gaming session, including the participation fees and wagers made during the game.

While the taxes have been raised to 5.3% from 5%, everything else remains the same. However, the regime was criticized in the past for being too strict. And several member EU states believe the drive to direct punters away from unregulated gambling platforms might be derailed due to the hefty taxes.

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