Germany to Issue Nine Online Gaming Licenses, Bringing Total to 12

Posted on: July 1, 2022, 07:11h. 

Last updated on: July 1, 2022, 02:03h.

Erik Gibbs Read More

Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

It’s been a year since Germany first made a move to legitimize online gambling. However, the country hasn’t been in a hurry. It took a year for it to issue three licenses, but has now announced that nine more operators will soon be able to launch.

The Sachsen-Anhalt State Administration Office yesterday provided an update on the status of online gambling in Germany. It was a retrospective of how the last year went following the approval of the Fourth Interstate Treaty on Gambling.

Since the government last year approved online gambling – casinos, poker, and slots – some 71 operators have submitted applications for licenses. However, until now, only 12 received approval, and they can only offer online slots.

Mernov, Tipwin, and Mybet will always be the first three to gain access to Germany’s controversial online gambling market. But competition is increasing. The update from yesterday didn’t mention which operators received approval.

Legal Gaming Market Grows

One application lost its chance over a lack of ties to the European community. The rest of the applications, except for eight that voluntarily withdrew, are still under review. Kindred announced last month that it was abandoning its plans for German operations, but added that it might reconsider in the future.

The State Administration Office also disclosed that 25 internet operators were referred to the public prosecutor’s offices for violating German law since the treaty became effective.

The administration has reviewed 148 cases of illegal gambling so far, according to the report. It has checked a total of 871 websites in a crackdown on illegal gambling.

The majority of the administrative proceedings focused on gambling operators who are not eligible for authorization because their registered office is outside the European community. The office also issued four prohibition orders.

Another outcome of the interstate gambling treaty was the creation of the Glucksspielbehorde (GGL), a new German regulator that will be responsible for enforcing the law. One of the first actions it will take as of tomorrow will be blocking illegal websites’ IP addresses and preventing online payments.

The GGL will fully control the country’s gambling laws as of January 1, 2023.

Unclear Future

The future of Germany’s online gambling segment is still uncertain. All 16 states approved the fourth interstate treaty on gambling last year, making it possible for operators to apply for a German gambling license. But the new treaty has also brought some pushback with its regulations.

In terms of the games, there are some changes with the new German license. Numerous table games are no longer allowed, and the existing games are subject to change. For example, there is a betting limit of a maximum of 1€ (US$1.05).

In addition, compulsory breaks are also part of the requirements of the license. These are a mechanism intended to prevent gambling addiction.

As a result, some operators don’t see the value in applying for a license. Instead, with the help of a license from other European countries, they continue to allow playing in online casinos without limits and restrictions.

The GGL’s planned block on IP addresses may help. However, savvy gamblers with tech know-how can get around those blocks.