German Interstate Treaty on Gambling comes into effect on July 1
The German gambling market has been a topic of conversation for anyone involved in this industry over the past year. With the current Germany Interstate Treaty set to end on 30 June 2021, a new policy with interesting amendments is expected to change the gambling landscape. Among the amendments, there are responsible gambling limits and tighter regulations regarding licensing.
Here, we look at what the new treaty means for operators and how they can remain compliant with the rules when operating in this region.
What has changed for players?
Back in March 2020, the German heads of state approved a legal framework which will govern all online gambling. You may have heard of the GlüNeuRStV which opened up all products and verticals. This treaty has, slowly but surely, been approved by each of the German states.
Coming into effect on July 1 2021, the German Interstate Treaty on Gambling will change a few key elements of the law. This includes a brand new licensing regime for poker, slots, sports betting and advertising. Each state will decide on regulations regarding casino table games. Additionally, a EUR 1,000 monthly deposit limits on all products and operators will be implemented, alongside a EUR 1 limit per spin on any online slot games.
What should operators know?
One of the key changes in the new treaty, set out by the German government is the responsibilities of operators in this region. They are now required to implement various databases to ensure that the online gambling market is properly monitored.
Within this, operators must use a compliant age verification and player authentication system in order to comply with the law. Many operators have already made this change as there was a previous transition phase set out by the government.
The Germany Interstate Treaty will also introduce several administrative offences with fines up to EUR 500,000 – so operators must be aware of the rules.
Cause for concern
While many operators are welcoming the treaty as new verticals open up, others are concerned over the tax laws being put in place. A recent study conducted by the Handelsblatt Research Institute found that tax rates could encourage players to play elsewhere.
Professor Dr. Bert Rürup believes that around 40% of players could end up playing offshore which would have a direct impact on the effectiveness of the player protection efforts.
The Professor stated: “Our data show that the majority of players in online casinos react very sensitively to changes in gaming conditions, This means that if the playing conditions on the online casino site they have been playing on change, for example, in the form of poorer chances of winning, lower betting limits or lower gaming speeds, over 40 percent of online casino players would look for an offer in which the playing conditions have not deteriorated.”
This is a cause for concern for some in the industry.
How can AgeChecked help?
AgeChecked provides online age verification software for gambling for the German market. To meet the German regulatory requirements for the onboarding of players, we have player identity and authentication checks, together with bank account verification and multiple account checks.
AgeChecked provides access to the reliable Schufa database, offering gaming operators and affiliates working within Germany two secure verification services with high match rates. We provide access to the national OASIS database, so that operators can fulfil their obligations to maintain ongoing monitoring of their players’ exclusion statuses.
PEPs & Sanctions checks are available for onboarding and/or for ongoing monitoring.