2021 Interstate Gambling Treaty Implemented Across Germany

Introducing a new era of online gambling in Germany! The IGT 2021 regulation has opened doors for private operators to obtain licenses for offering online casinos, poker, and sports betting. However, certain restrictions on casino advertising have also been implemented.

What’s Different?

The IGT 2021 now allows private operators to apply for a nationwide gambling license that is valid for five years. But before offering online casino games, operators must seek permission from the Federal States as it falls under the category of virtual simulation and is regulated by regional authorities.

The good news is that operators can still offer virtual slot machines, online poker, and sports betting. The licensing process involves six key points.

Dedicated Sections for Different Types of Gambling

An operator must create separate sections on their website if they offer multiple forms of gambling like sports betting and virtual slots. Players should not have access to multiple types of gambling under one section. Additionally, cross-advertising between different types of gambling is not allowed.

Monthly Deposit Limit

Players are limited to depositing €1,000 per month across all legal gambling platforms combined. This applies to all forms of online gambling.

Security Deposit

Online operators must deposit €5 million as security when applying for a license. This amount may increase based on projected monthly revenue but cannot exceed €50 million.

Flexible Betting Limits

Punters now have the option to place bets on game outcomes and in-play events. Live betting is 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. Additionally, players can only wager €1 per spin.

How to Obtain a Gambling License?

The gambling authority of Saxony-Anhalt is responsible for overseeing the license application process and has laid out specific conditions:

1. The application must be submitted in writing, along with a declaration of attached documents and estimated costs for verifying safety, economic efficiency, and social concepts.
2. The applicant must provide all necessary documents as evidence, including:

• Voting rights and financial structure
• Authorized representatives
• A commitment to not host unlicensed gambling
• Administrative records such as clearance certificates
• A declaration of completeness

3. An operator established within the EEA or EU may apply for a gambling license. If any documents are not in German, they must be accompanied by a certified translation of the original version.

New Tax Regulations

The IGT 2021 brings about changes in tax provisions as well. Taxes on online poker and video slots are now calculated based on the money bet, minus the tax on virtual gaming machines (pending assessment). The money bet includes all expenses incurred by the player during a gaming session, such as participation fees and wagers made during the game.

While taxes have been raised to 5.3% from 5%, everything else remains unchanged. However, this regime has faced criticism in the past for being too strict, and some member EU states believe that the high taxes may hinder efforts to steer players away from unregulated gambling platforms.