Germany Agrees to Implement Transitional Period for Online Casino Operators

After much preparation, German states are finally on the cusp of changing legislation for local online casinos and virtual sports betting. According to a draft circulating among the 16 states, operators can continue serving the lucrative German market until July 2021 as long as they follow strict guidelines.

This proposal, recently accepted by state representatives, covers the period between October 15, 2020 and July 1, 2021. This comes as a huge relief for operators who feared their businesses would be forced to shut down until the new legislation took effect. This interim period is similar to the “cooling-off” period observed by neighboring Netherlands.

The Impact of Interim Laws on Online Sportsbooks and Casinos

In an official statement, authorities confirmed that operators will not be penalized if they adhere to the rules laid out. These interim laws are currently being reviewed by the European Union. If approved, they will introduce a new tax structure for online gambling, along with appointing a state-wide regulator – potentially based in Saxony-Anhalt – Germany’s 11th most populous state and 8th largest in terms of area.

German operators have until October 15th to comply with these interim laws after which no new permits will be granted. Additionally, licenses could also be revoked once the new rules take effect in July. While most major operators are expected to comply, these laws will significantly reduce revenue streams.

The tension between online casinos and state authorities has been a major point of conflict, leading to numerous discussions and debates. While some federal states believe in liberalizing gambling, others have a different opinion. Some states have been vocal about introducing licensing policies for online poker and casinos, while others are in favor of outright banning these services.

Predictions for the Future

This treaty is a healthy compromise between various factions and is expected to satisfy all parties involved. Initial projections suggest that revenue from top online casinos could reach €50 million per month in the next year.

Online operators can offer multiple services – such as sports betting, iGaming, poker, etc. – using a single domain. However, there must be separate sections visually distinguishing each service. For instance, someone visiting the online casino section should not be able to access sports betting through the same platform.

Players also need to create individual accounts for each platform, and operators must verify each account before allowing access. The current legislation does not specify how this verification process must be done. More details are expected to be released in the coming months.

The authorities have also set a maximum limit of €1,000 per month per player across all platforms – meaning if a player deposits €600 with one operator, they will only have €400 left for the rest of the month if they sign up with another operator.