Allows Initial Issuance of German Licenses
In a historic move, the Hessian State Chancellery has issued the first 15 sports betting licenses to various operators, marking a significant step towards the legalisation and regulation of online sports betting in Germany. The move, which comes after the adoption of transitional rules by the state chancelleries of the Federal Republic of Germany, is hailed as a resolution to many legal controversies.
The new framework, governed by the State Treaty on Gambling (GlüNeuRStV), which comes into effect in July 2021, legalises and regulates online sports betting, virtual slot machines, and poker across all German federal states. The regulation and licensing of operators are managed by the Gemeinsame Glücksspielbehörde der Länder (GGL), the Federal Authority of German Gambling, established in 2023 to unify supervision at the federal level.
The GlüNeuRStV establishes a tightly regulated, federally supervised framework for sports betting with a strong focus on player protection, licensing, and taxation. Operators must obtain a license from the GGL to legally offer online sports betting in Germany, with only licensed providers allowed to operate. This is intended to reduce illegal gambling activity, which remains substantial, with unlicensed operators reportedly accounting for about 25% of the total online gambling market.
Strict player protection rules are mandated, including deposit limits, reality checks, and a centralised player ban system. These measures are designed to promote responsible gambling and protect vulnerable customers. There are also heavy limitations on live betting and the types of bets allowed, as well as stringent advertising restrictions.
Sports betting operators are subject to a turnover tax, with a rate of 5.3% for slot machines and poker. This tax regime applies to licensed operators to ensure transparency and regular audits to maintain compliance. Players must be of legal gambling age (typically 18 years) and physically located within Germany to participate in online gambling under this treaty.
Among the companies that will be allowed to operate in the German market are GVC, Tipwin, and Gauselmann, with four GVC brands (Ladbrokes, Sportingbet, bwin, and Gamebookers) among the companies that will be allowed to operate. These companies are now permitted to offer sports betting on Bundesliga games, Formula 1, and more, both in betting shops and online.
The Hessian Minister of the Interior, Peter Beuth (CDU), has welcomed the awarding of the first sports betting licenses as a breakthrough. Other companies such as Novomatic's Admiral Sportwetten, Tipico, Bet365, Playtech's German-speaking sports betting brand HPYBET, and BetVictor are also included.
Gauselmann, the owner of Merkur and market leader in German gambling, has expressed joy at receiving official approval as one of the first providers. Both Merkur online slot machines from the Blueprint series and Edict department games are set to be offered in Germany.
Online bookmaker Tipwin has fulfilled all future German licensing conditions since 2014. A ban on live bets and table games applies.
The German Sports Betting Association (DSWV) has welcomed the first German license holders and applicants, among which are several member companies. The DSWV has been advocating for German gambling reform for some time and has even presented its own set of potential transitional rules to the German state chancelleries.
This new framework aims to legalise and control the online gambling market but faces challenges due to persistent illegal operators and industry concerns about over-regulation. Nevertheless, it represents a significant step forward in the regulation of online sports betting in Germany.
What about the role of technology in this new framework for online sports betting in Germany? The newly established Gemeinsame Glücksspielbehörde der Länder (GGL), the Federal Authority of German Gambling, will be using technology to manage the licensing and supervision of operators, ensuring compliance with the strict player protection rules, taxation, and advertising restrictions.
