Germany Agrees to Implement Transitional Period for Online Casino Operators

The German states have long been anticipating a change in legislation for online casinos and virtual sports betting. According to the current draft being circulated among the 16 states, operators can continue serving the lucrative German market until July 2021, as long as they follow strict guidelines.

This proposal was recently accepted by state representatives and covers the period between October 15, 2020 and July 1, 2021. After this, the Interstate Treaty (IT) will take effect. This is a huge relief for operators who feared their businesses would shut down until the new legislation was in place, similar to what their counterparts in nearby Netherlands experienced during a “cooling-off” period.

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

The authorities have confirmed that operators will not be penalized as long as they comply with the set rules. The interim laws are currently being reviewed by the European Union. If passed, they will introduce a new tax structure for online gambling and establish a state-wide regulator, possibly based in Saxony-Anhalt – Germany’s 11th largest state by population and 8th largest by area.

German operators have until October 15 to comply with these interim laws or risk not receiving any new permits. Additionally, their licenses could also be revoked once the new rules take effect in July. While most major operators are expected to comply, these new laws significantly reduce revenue streams.

Predictions for the Future

This treaty is seen as a reasonable compromise between various factions involved and is expected to please all parties. Initial projections suggest that revenue from top online casinos could reach around €50 million per month in the coming year.

Online operators can offer multiple services such as sports betting, iGaming, and poker using a single domain, but each service must be visually separated. For example, someone visiting the online casino section should not have access to sports betting on the same platform.

Players are also required to create separate accounts for each platform and operators must verify these accounts before allowing them to use their services. 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 monthly spending limit of €1,000 per player across all platforms. This means that if a player deposits €600 with one operator, they will only have €400 left for the rest of the month if they sign up with another operator.