Germany: New State Treaty on Gambling 2021

Gambling

Sports betting in Germany will start into a new era, so to speak, on October 15, 2020. Because on this day the transitional regulation for online gambling, which also includes bets. It applies until the new State Treaty on Gambling (GlüStV) actually comes into force after years of legal tug-of-war. This is expected to happen in July 2021. This will result in many important innovations not only for providers but also for players.

The transition period up to the fourth State Treaty on Gambling (strictly speaking actually the Third State Treaty on Gaming, note) can therefore be understood as a “work in progress”.

What’s next for the German Gambling Treaty

Why is a new State Treaty on Gambling needed?

The digital age has fundamentally changed the world of gambling and sports betting. The digital era launched mobile casino (모바일카지노). This led to new as well as quick and easier availability – a real boom internationally. Countless providers forced their way into a steadily growing market. It is therefore hardly surprising that legislators soon stepped on the scene to redefine the framework conditions. Player protection has always been a central issue.

In the Federal Republic of Germany, this has not been an easy process so far. The struggle for the uniform legal regulation of gambling and sports betting has been going on for ten years, at times it caused more ambiguities than practical benefits. The State Treaty on Gambling 2021 will be the fourth of its kind.

The first gaming contract from 2008 initially only allowed state providers such as Oddset and, like a later decided restriction of the sports betting license to only 20 providers, did not meet the EU regulations. Compatibility with European law should always remain a major hurdle for new legislation. The third State Treaty on Gambling in 2017 was not even ratified by the federal states because it would hardly have withstood a lawsuit. The consequence of this tough process has been that betting provider temporarily moved in legal gray areas or even illegality, while the federal and state governments did not intervene at all.

Betting tax

In the meantime, contract number two from 2012 brought about a far-reaching change in the sports betting market, namely with the introduction of the so-called betting tax, i.e. the legally binding levy of five percent on sports betting. First of all: German players will not be spared the betting tax in the future either – unless the betting provider pays it.

At the end of 2019 there was a new movement in the topic of the State Treaty on Gaming, but efforts to introduce German sports betting licenses were once again sluggish. Another betting provider filed a lawsuit claiming that the licensing procedure was not transparent and that applicants were not treated equally. So back to the start. The result is a new state treaty amending gambling, which should come into force on July 1, 2021. It is clear, of course, whether someone will be found again who wants to challenge the whole thing in court.

What will change with the State Treaty on Gaming in 2021?

The new State Treaty on Gambling brings far-reaching changes. Since we are exclusively dedicated to sports betting on our site, we limit ourselves here to the betting topic and leave out other offers.

The most important changes planned by the new GlüStV:

  • Deposit limit of € 1,000 per month
  • Restriction of live bets
  • Abolition of some betting markets such as bets on events in a sporting event (XY scores a goal), eSports bets or company bets
  • Mandatory measures for player protection such as panic button
  • Geo-blocking from unlicensed websites & providers
  • Automated gambling addiction early detection system

The new legal framework is to come into force in full in July 2021. Until then, the 16 federal states, some of which had very different views on the subject of sports betting, still have to ratify the treaty in their parliaments. In any case, the way to a nationwide solution is clear. It is clear, of course, whether there will be someone again who wants to challenge the laws in court.

A transitional regulation will come into force on October 15, 2020, and many of the new measures will already be implemented. Betting providers are required to submit to the new regulations now and apply for a German sports betting license. If they do not, this unreliability could be interpreted disadvantageously in an application in July 2021, according to the legislature.

A maximum of € 1,000 deposit per month

The topic most discussed among bettors is clearly the planned deposit limit of 1,000 euros per month. According to initial rumors, it was said that this should be a betting provider overarching limit. However, there is also talk of “domain-related”, i.e. per provider. In some broadcasts from the betting providers, there was even talk of a “bet limit”. In any case, it is certain that when registering, users must set a limit of a maximum of EUR 1,000 per month for deposits with the respective bookie. A possible increase in this limit in connection with proof of income by the players is being discussed at least as a future topic.

What bettors should be prepared for in any case: The verification will be even more meticulous in the future. In addition, one or the other document will probably be necessary for this. The requirements regarding payment methods are also becoming stricter. The names of the account holder and the person making the deposit must be identical. Paysafecard users must register with this payment service provider (MyPaysafecard) from October 15th.

Final whistle for event bets

Significant cuts come into effect in betting markets for individual sporting events. Event bets such as “Who will score the next goal?” Or “Who will get the next yellow card?” Should not be abolished. Above all, the legislature will restrict the offer of live bets.

Practice will show how far-reaching the changes will be and to what extent the pre-match market will also be affected. Bets on “Robert Lewandowski scores in the game against XY” were possible again after a few days, as was a pre-match bet over / under on the number of goals.

In addition, eSports bets, social bets and political bets have also disappeared from the sports books.