The German Federal States sanctioned the 2021 Interstate Gambling Treaty (also known as the GlüNeuRStv) in March 2021, which took effect on July 1 of the same year. This treaty imposes sweeping limitations on online gambling, with an exception for licensed traditional lotteries, sports betting, horse racing, online poker, virtual slot machines, and online casino games, up to a specified limit.
Home-grown gambling industry participants have reiterated the critical need for significant amendments to the treaty. As per the treaty’s primary objective of safeguarding the consumers, these changes would be indispensable.
Living conditions under existing GlüNeuRStv regulations fail to safeguard the “regulation” of player protection measures
The fundamental purpose of the GlüNeuRStv is to provide robust protection to players through a nationwide blocking system, which is to be applied across all gaming companies and every game category, using state-of-the-art Artificial Intelligence detection mechanisms. Furthermore, game-specific interventions such as the minimum playtime rule and maximum betting limit are integrated into the treaty’s strategy.
The German Online Casino Association’s President, Dr. Dirk Quermann, has remarked that such interventions reduce the appeal of licensed providers in comparison to the unregulated black market. Dr. Quermann maintains that consumers are likely to patronize a robust and legal online gambling platform, and the Association is thus fully committed to ensuring the availability of online gambling in a secure environment for both the players and the state.
At the most recent Parliamentary Evening event hosted on September 21 in Dusseldorf and co-hosted by the DOCV and the German Sports Betting Association (DSWV), key players in the gambling industry seized the opportunity to vocalize the need for federal legislators to reinforce the regulated market’s legal offerings. This is requisite for enhancing the protection of German consumers who are presently under attack by operators in the black market.
Industry insiders took the aid of the leading speaker, Christof Rasche, who also serves as the Vice President of the State Parliament of North Rhine-Westphalia, to clarify that the existing GlüNeuRStv regulations failed to establish a “regulated system” that ensures consumer protection.
Addressing the need for major changes, Rasche expressed his disappointment that the provisions of implementing bans and restrictions were taking precedence over efforts to expand the legal market. He also called for an “early evaluation” of the GlüNeuRStv, contending that unless the amendments were carried out, the treaty’s goals would not be fulfilled.
Decreased Taxation, Booming Black Market
The President of the DOCV echoed the same viewpoint, talking further about the negative impact that all sectors of the online gambling industry have observed, as well as the “increasingly virulent” problem posed by the black market.
He underscored the worrying decrease in federal taxation from online slot machines, which has reduced by 50% from €40 million ($42 million) to €20 million ($21 million) per month since 2021. The drop in taxation can be traced to the licensed operators being compelled to adhere to the €1 ($1.06) maximum stake limit and the stringent in-game rules set by the treaty.
President Quermann also emphasized the Federal Gambling Authority’s right to directly amend the stringent terms, as they would not necessitate parliamentary involvement for execution.
Also present at the occasion were DSWV’s President and representative of the licensed German bookmakers, Mathias Dahms. Dahms broached the “polarizing debates” on betting advertisement regulation. However, he was optimistic about achieving consensus on a federal advertising code in the gambling industry.
In August, the DSWV had rebutted media reports that had misconstrued findings from a 2021 Gambling Survey concerning the actual number of problem gamblers in Germany.
