2021 Interstate Gambling Treaty Implemented Across Germany

Introducing exciting new opportunities for private online casinos, online poker, and sports betting operators. IGT 2021 has also implemented a number of restrictions on casino promotions.

What’s Different?

The IGT 2021 allows private operators to apply for a national gambling license. The license is valid for five years and operators must obtain permission from the Federal States to offer virtual casino games, which fall under German laws and are regulated by regional authorities.

However, operators can still offer virtual slot machines, online poker, and sports betting. The licensing process is thorough and covers six key points.

Dedicated Sections for Different Activities

• An operator must create separate sections on their website if they offer multiple forms of gambling such as sports betting, virtual slots, etc. Players should not be able to access multiple types of gambling within one section. Additionally, cross-promotion between different types of gambling is prohibited.

Monthly Deposit Limit

Players are limited to depositing €1,000 per month across all forms of online gambling within the entire domain. This applies to all legal gambling platforms combined rather than individual operators. In other words, a player can only invest €1,000 per month across all authorized websites.

Security Deposit

To apply for a license, online operators must deposit €5 million as security. The amount may increase based on projected monthly revenue, but the maximum deposit is capped at €50 million.

Flexible Betting Limits

Punters can now place bets on game outcomes and in-play events. Live betting is also allowed under certain conditions.

Central Monitoring Authority

A central monitoring authority will be established in the near future to ensure compliance. Providers are required to pay a fee to connect with the central database.

Minimum Spin Time for Slot Machines

Virtual slot machines must spin for at least five seconds before displaying results. Additionally, punters are limited to a maximum of €1 per spin.

How to Obtain a Gambling License?

The Saxony-Anhalt gambling authority oversees the license application process and has set forth the following requirements:

1. Format – The application must be submitted in writing, in addition to email correspondence. It should include a declaration of attached documents and expected costs for verifying safety, economic efficiency, and social concepts.
2. Required Documents – The applicant must provide all necessary documents as evidence during their application process. These documents include:
• Voting rights and financial structure of the applicant
• Authorized representatives
• A pledge not to host unlicensed gambling activities
• Certified administrative records such as clearance certificates
• A declaration of completeness
3. Limits on Use – Nations within the EEA and EU can apply for a gambling license. If any documents are not in German, they must be accompanied by a certified translation of the original.

Revised Tax Structure

The IGT 2021 has implemented new tax regulations. Taxes on online poker and video slots are now calculated based on the amount wagered minus any virtual gaming machine taxes (pending assessment). The amount wagered includes all expenses incurred by the player during a gaming session, such as participation fees and wagers made during gameplay.

While the tax rate has increased from 5% to 5.3%, everything else remains unchanged. However, this strict regime has faced criticism in the past, with some EU member states believing that high taxes may deter players from using regulated gambling platforms and instead turn to unregulated ones.