The online casino has been a prolific form of digital business and surprisingly, this industry has been existing since the halcyon days when the internet was still new and getting access seemed challenging because dial-up was still needed by then. The digital world back then could only offer a handful since the availability of the browser was then limited. Nevertheless, online casinos came into existence in the early 1990s and are currently became one of the influential virtual gaming sites.
All forms of entertainment are welcome in Germany. However, this beautiful country in Western Europe has some inhibitions. Glücksspiel im Internet in German or Gambling on the net is considered legal if the internet provider is licensed.
In a way, Germany tolerates online betting as long as the bettor is 18 years of age and one has to make sure that the site has an updated license given by the gambling jurisdictions.
The country has 16 federal states and each state, they have unique laws so if the virtual punter will move to another state, they have to familiarize the law including gambling in this new state.
From 2008-2012 gambling is illegal under its federal regulation except for one state which is the Schleswig-Holstein. It was only later that the government decided to open its doors to wagering and promulgated some procedures, rules as well licenses for the local gambling operators.
The two gambling laws of Germany are:
1. The Glücksspielstaatsvertrag (The German Interstate Treaty)
This law marks the understanding of the 16 states of the country where online lotteries and twenty betting operators are now part of the agenda. This has been updated in 2008. Its aim is to protect the innocent and to prevent fraud and crimes because of wagering.
2. The Glückspeilgesetz (Gambling Law)
Schleswig-Holstein
The state of Schleswig-Holstein permitted the operation of the online casino even though the new treaty was implemented in the country. Virtual gambling operators have been taxed at a 20% GCR rate and the state allowed all gambling licenses.
At present, the state is asking the operators to submit via email their application and a payment amounting to 2,500 euros for the application. This license will last for up to 15 years.
The Fourth State Treaty came into effect last year and the state of Schleswig-Holstein is part of it hence all online casinos should be examined thoroughly.
This new treaty was introduced on July 1, 2020, and is valid in the states of Germany. Along with it are the new rules about licensing, advertising, tax rates, and other conditions. This new regulation validates and included online casinos.
It also gives the operators chance to offer video poker, some online casino games, and online slot machine games since they were only allowed sports betting in the online gambling industry. Though they were already permitted to operate these games, significant restrictions still have to be observed.
Slots are subject to 1 euro per spin as a stake limit. It can be played to separate table games and the autoplay function is not one of its features and jackpots are not offered as well.
Online sports betting has already been in full operation even before the said treaty but it is limited to live to bet.
Online table games are still under proposal as well as a monopoly on their lotteries.
After the Bundestag - the country’s legislature approved the Bill for a 5.3% tax on online slots and poker stakes that the launching followed. The approval of the said vote was very controversial and the Deutsche Sportwettenverband (DSWV) Germany’s sports association was worried about the said increase in the tax rate for fear that it might threaten the gambling laws of the country and jeopardize its success. Gambling operators also criticized the said tax rate since it was indeed too high. Other online wagering rules were also criticized back then.
These are the following features of what players have to expect.
Although Germany accepts all major payment schemes the majority accepts all major debit and credit cards, online bank transfers, and Paypal as the main digital wallet.
All gambling operators are required to follow the government’s strict rules which means that the casino sites should be duly licensed and updated. Bettors are assured that all casino sites in the land have no fraudulent issues and are certainly legal.
The state of the online casino in Germany seemed a bit vague at the moment – perhaps because they are still adjusting to this new form of entertainment and the government is concerned about the welfare of their people. But still, a silver lining in the gambling industry is slowly unfolding in the country.
