New online casino regulation changes the game rules in Germany

The German gaming market is expected to reach €2.8 billion this year, up from €2.3 billion last year. Mobile Internet users in Germany number 58.88 million, or 87.4% of the country’s total population, according to Hootsuite. According to the same study, 95.4 percent of Internet users aged 16 to 64 have a smartphone, and 52.7% of those with laptops or desktops, or tablets own one as well. An estimated 78.81 million people, or 94% of the country’s population, are connected to the Internet on a regular basis, Hootsuite reports. This is one million-person increase over the previous year.

Gamers in Germany are enthusiastic about playing online slots and casino games. Only 13% and 32% respectively of those surveyed according to gamblingorb-de.com played online every day. When it comes to sports betting, 15% of respondents said they bet every day while 29 percent said they bet weekly.

Legislation on Gambling in Germany

Germany’s federal and state governments control gambling. The new Interstate Treaty on Gambling will allow federally controlled online slots and poker in 2021. The treaty sets a uniform legal framework for gaming across the country. States can apply stricter regulations.

New Regulations 2021

On July 1, 2021, the new Interstate Treaty on Gambling (ISTG 21) went into effect, bringing with it some of the most significant changes to gambling legislation in the country in recent memory. Online gambling, which was previously restricted to Schleswig-Holstein, is likely to be legalized across the country, with operators being able to access new licensing.

There are, however, some nuances to the new rules. Limits on deposits and wagers, as well as how operators advertise and tax, will all be strictly enforced.

• There must be a registered office of a casino operator in the EU or EEA

• You need a German version of your website that includes all of the relevant information.

• In order to play on different platforms, players must first create an account.

• Deposits on websites are restricted to a total of €1,000 per player per month, regardless of the provider.

• Operators are required to provide players with an easy way to opt-out for a period of 24 hours (Cool Down button)

• Virtual slots do not allow automatic play, with each game lasting at least five seconds.

• Virtual slots have a maximum bet of €1 per spin.

• Players at a virtual poker table must be assigned at random.

• Between 6 a.m. and 9 p.m., online gambling ads are prohibited.

• There will be no more live betting.

Taxation

There is a 5.3 percent tax on online sports betting, horse race betting, online slot, and poker gaming. Online casino games in Germany are now subject to 19 percent VAT, regardless of whether they are legal or illegal. This change in German VAT legislation took effect on January 1, 2015.

Advertisement

However, advertising is permitted up to this point:

• It is against the law to advertise using telecommunications systems (exceptions apply).

• Ads should not be overtly promotional.

• Adverts should not target minors or other vulnerable populations.

• A solution to financial woes should not be presented as a game of chance.

• You may not use the radio or the internet to advertise your online slots, online poker, or other online casino games between six in the morning and nine in the evening on any given weekday.

• Adverts for sports betting during the live broadcast of sporting events are not permitted before or during the broadcast.

• With active athletes and officials, sports betting advertisements are not permitted.

• Advertising for games of chance is not permitted on uniforms, boards, or other sports-related advertising media in sports facilities.

Bonusing

The German regulator only permits a yearly bonus of up to €100. The bonus can only cover a maximum of 10% of a bet’s stake.

Casino Games in Germany

Mystery Joker, All Ways Joker, and Fire Joker are popular German Joker-themed video slots. Book of Dead is a popular video slot that’s been around for years. Slot machines and table games like Blackjack and Roulette are popular in the U.S. Due to Germany’s high mobile penetration, numerous operators are recreating classics with high-quality visuals, gamification, and sophisticated gameplay.

Looking Forward

In Europe, the German igaming market is the second-largest, after the United Kingdom, and ahead of Italy. Local bookmakers like Tipico and international ones like bet365 have already entered the market.

Because German regulations are so complex and necessitate such a large amount of development effort, it is critical to pick the right technology partner.

Sports betting and online casino solutions provided by Delasport comply with German regulations and the company has already begun selling its software to partners.

The size of the German market is expected to increase by around 10% y2y. Until the entire regulatory process is completed, operators and software suppliers are holding out for answers.