Germany Agrees to Implement Transitional Period for Online Casino Operators

A new era is dawning for German online casinos and virtual sports betting operators. According to a draft currently circulating among the 16 German states, these operators have until July 2021 to continue serving the lucrative German market, as long as they comply with strict guidelines.

This proposal, recently accepted by state representatives, will be in effect from October 15, 2020 until July 1, 2021. This news comes as a huge relief for operators who feared their businesses would come to a halt before the new legislation was put in place – similar to the cooling-off period observed by their counterparts in nearby Netherlands.

What Does This Mean for Online Sportsbooks and Casinos?

The authorities have confirmed that operators will not be penalized if they follow the rules laid out in an official statement. These interim laws are currently being processed by the European Union and if passed, will introduce a new tax structure on online gambling. A state-wide regulator may also be appointed – possibly based in Saxony-Anhalt, Germany’s eleventh largest state by population and eighth largest by area.

Operators have until October 15 to comply with these interim laws or risk not receiving any new permits. Furthermore, their licenses could potentially be revoked once the new rules come into effect in July. While most major operators are expected to comply, these laws significantly reduce revenue streams.

Predictions for the Future

This treaty is seen as a fair compromise between different factions and is expected to satisfy all parties involved. Initial projections show that top online casinos could potentially generate around €50 million per month next year.

Online operators can offer a variety of services, such as sports betting, iGaming, and poker, under a single domain. However, each service must have its own distinct section with separate graphics. This means that a person visiting the online casino section cannot access sports betting on the same platform.

Players are also required to create separate accounts for each platform and operators must verify every account before they can start playing. The current legislation does not specify how these credentials must be verified, but more details are expected in the upcoming months.

The authorities have also set a monthly spending limit of €1,000 per player across all platforms. This means that if a player deposits €600 with one operator, they will only have €400 left for the rest of the month when signing up with another operator.