2021 Interstate Gambling Treaty Implemented Across Germany
Experience the thrill of new and exciting licensing opportunities for private online casinos, online poker, and sports betting operators with IGT 2021. Along with these new possibilities, IGT 2021 has also implemented some restrictions on casino advertising.
What’s Different?
Under IGT 2021, private operators can now apply for a gambling license nationwide. This license will be valid for five years, but operators must receive permission from Federal States to offer virtual casino games, as they are classified as virtual simulations under German laws and are directly supervised by regional authorities.
Dedicated Sections for Different Operations
If an operator offers multiple gambling options such as sports betting, virtual slots, etc., they must create dedicated sections on their website. Players should not have access to multiple gambling options under a single section. Additionally, cross-advertising is not allowed.
Monthly Deposit Limit
The maximum deposit limit per month across all domains is €1,000. This applies to all forms of online gambling. Players can only invest €1,000 per month across all legal gambling platforms combined.
Safeguard Deposit
Applying for a license may increase the maximum deposit limit to €5 million or €50 million, based on projected revenue, while also ensuring security with this amount.
Flexible Online Betting Options
Punters can now place bets on the outcome of games and in-play events, including live bets under certain conditions.
Establishing a Central Monitoring Authority
In the near future, a central monitoring authority will be established to ensure compliance. Providers must pay a fee to connect with the central database.
Minimum Spin Time for Virtual Slots
Additionally, virtual slot machines must only display results after at least five seconds have passed since the spin button was clicked and the wager of €1 or more has been placed.
How to Apply for a Gambling License?
The application and overseeing authority must ensure that the following conditions are met:
- Format – The application must be submitted in writing and via email. It must include a declaration about attached documents and estimated costs for verifying safety, economic efficiency, and social concepts.
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Required Documents – The applicant must submit all necessary documents as evidence during their application. These documents include:
- Voting rights and financial structure
- Authorized representatives
- A pledge not to host unlicensed gambling activities
- Administrative records such as clearance certificates
- A declaration of completeness
Tax Changes Under IGT 2021
Under IGT 2021, new tax provisions have been introduced. Taxes on online poker and video slots are now calculated based on money bet minus taxes on virtual gaming machines (pending assessment). The money bet includes all expenses incurred by the player during a gaming session, including participation fees and wagers made during the game.
While taxes have increased from 5% to 5.3%, everything else remains unchanged. However, this tax regime has been criticized in the past for being too strict, with some EU member states believing it may derail efforts to steer punters away from unregulated gambling platforms due to high taxes.