The New Treaty That Could Transform Germany’s Gambling Industry

The gambling industry in Germany is in the spotlight again. After many debates regarding strict laws regarding gambling in Germany, there is finally light at the end of the tunnel emerging. 

So what is new? The new Interstate Treaty on Gambling (ISTG 21) brings something completely new to the (poker) table. It contains some of the biggest changes to gambling legislation in the most recent history in Germany. This treaty is great news for online gambling as well which was first allowed only in the state of Schleswig-Holstein. Now it will be legalized across the nation.

Although there will also be some serious changes… Advertising conditions, tax policies will receive some heavy alterations while deposit and betting limits will be tightened. The opinions of this treaty are different and it faces some serious opposition. What will happen next?

How did the gambling industry in Germany look like before this treaty?

Gambling laws in Germany were really strict. Internet casino games were allowed in only one state while online gambling was limited to sports betting. Yet, they needed to address this problem because gambling wasn’t properly regulated or taxed so all the revenue from players in Germany went to companies overseas. 

So this was the 11th hour for things to change and the gambling industry in Germany will never be the same. 

A short overview of the changes in the gambling industry in Germany

Germany was the country with the most archaic laws when it comes to gambling. For the first tie in history, the licensed operators will be allowed to run online casino games, online poker games, and slots. Each licensee will need to provide a security deposit of at least 5 million euros. 

The German government knows that they will expect a significant rise in casino use so there will be some restrictions in order to enable safe gambling practices.

These include:

  • Deposit limit of €1000 a month per player which is obligatory
  •  A maximum bet of 1 euro on slots
  •  A minimum of 5 sec per spin on slots.

Advertising will also suffer some restrictions – Germans followed the model similar to the ban in the UK. This means there will be no sports betting advertising before and during live events and ads will be allowed only after 9 p.m. until 6 a.m.

Pros and cons

Germany took a huge step with this treaty by acknowledging gambling activities. This means that this activity exists makes it taxable and easier to have more control over it. German players will finally enjoy wider choices of domestic gambling options.

The only downsides are taxes and much stricter rules which will make German players look for more flexible options elsewhere online.

So what Germans can expect?

It is still early to say how everything will work out in the end and how the long-term effects will look like when it comes to the German economy. The only positive thing is that this is one significant step for German players into something new. We will probably see some significant changes – but for better or for worse? Remains to be seen. 

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