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 current draft, these operators have until July 2021 to continue serving the profitable German market, as long as they adhere to strict guidelines.

This proposal, recently accepted by state representatives, covers the period between October 15, 2020 and July 1, 2021. This comes as a huge relief to operators who were concerned their businesses would shut down until the new legislation took effect. This is similar to the cooling-off period observed by neighboring Netherlands.

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 set forth. The interim laws are currently being reviewed by the European Union. If passed, this new legislation will introduce a new tax structure for online gambling, along with establishing a state-wide regulator – potentially based in Saxony-Anhalt, Germany’s eleventh largest state by population and eighth largest in terms of area.

German operators have until October 15th to comply with these interim laws before no new permits will be issued. Additionally, licenses could be revoked once the new rules take effect in July. While most major operators are expected to comply with these regulations, it will significantly impact their revenue streams.

This has been a major point of contention between online casinos and state authorities, leading to numerous discussions and debates in the past. While some federal states believe in liberalizing gambling, others hold different opinions. Some states have been vocal about implementing licensing policies for online poker operators and casinos, while others are in favor of outright banning such services.

Projections for the Future

This treaty is seen as a fair compromise between various factions and is expected to satisfy all parties involved. Initial projections suggest that revenue from top online casinos could reach €50 million per month next year.

Online operators can offer multiple services such as sports betting, iGaming, poker, etc. through a single domain. However, each service must have separate sections with distinct graphics. For example, a person visiting the online casino section should not be able to access sports betting on the same platform.

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

Additionally, there is a monthly limit of €1,000 per player across all platforms – meaning if a player deposits €600 with one operator, they will only have €400 remaining for any other platforms within that month.