If you are a fan of online gaming / gambling in Germany, then you wouldn’t have been happy with some new rules that came into effect from 1st July 2021 onwards. As a country, Germany always struggled to find the right laws and rules for online gambling and recently in March 2020, the new Interstate Treaty on Gambling was approved.
As per the treaty, for the first time ever, Germany will be able to give away licenses to brands looking at running online casino websites in Germany. It basically means a sea of change for the online gambling industry as a whole in Germany. We’re looking at more opportunities, employment and of course, revenue for the government and the economy as a whole. Read in-depth here.
These licenses for online casino games in Germany are being rolled out for the first time, which means the chance for established companies to begin in Germany, while also the opportunity for online gaming start-ups to start operations. Currently, land-based casino and offline and online sports betting is legal in Germany but online casino isn’t, except for in the state of Schleswig-Holstein.
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The new law apparently recognizes four categories and they are online casino table games, online / virtual slots, online poker and sports betting. Each state in the country will have right to decide whether to have a monopoly on casino games (like roulette and baccarat) or to issue licenses separately.
While the news is good for online casino operators, there is lot of speculation with regards to the restrictions, like product offerings, deposit limits and of course, restrictions on advertising and affiliate marketing. The online casino business benefits largely from revenue sharing from such affiliate deals while most operators now are switching to CPA deals for affiliation in Germany, which isn’t lucrative for affiliates.
Regarding taxation, Value Added Tax in Germany means there will be taxation on online casino gaming and sportsbook operators in the country pay a 5% turnover tax. For new players, a deposit limit will have to be set which can’t exceed €1,000 and this may not make sense for the richer sections of society and those with a higher spending ability.
Operators who were not in compliance with the new upcoming regulations when announced last year but continued offering online casino services during this transition period are in trouble. They are not eligible for these licenses when first offered in July 2021 and here too, the laws were criticised, as operators were only given 2 weeks in October 2020 to become fully compliant.
For more updates on online casino websites and regulations from across the world, stay tuned to ReadScoops.com…
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