German Games Treaty to enter into force across the country

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German Games Treaty to enter into force across the country

The German state parliament of North Rhine-Westphalia (the most populous German state) approved the German Games Treaty, Der Glücksspielneuregulierungstaatsverag (GlüNeuRStV), the last state to agree to the terms.

This authorization is essential for the launch of GlüNeuRStV, as the agreement will enter into force in all 16 states of the country as of July 1, 2021.

Saxony-Anhalt was the fifteenth state to approve the treaty, which means that the new regulatory body will be located in the city of Halle in 2022. This entity will be tasked with monitoring bettors’ activity to ensure that every game is legal.

The treaty will expand igaming offerings in the country, in addition to betting on online casino games. However, some portions of the agreement were considered controversial. Slots will be restricted to a € 1 bet limit per spin, with an average spin speed of 5 seconds.

Online slots and poker will also be subject to a 5.3% turnover tax. A report commissioned by Entain, Flutter and Greentube warned that this tax rate could lead to a drastic reduction in the use of legal platforms. There is a risk that 49% of bettors will start looking for offers and bonuses on irregular websites.

Live sports betting will be limited to bets on the final score or the top scorers. The German operator association Deutscher Sportwettenverband was opposed to these measures.

New deal in Germany calls for measures to encourage responsible gambling

To ensure the creation of policies to encourage responsible gambling, the agreement also imposes monthly financial limits on all players. In addition, a transition period is underway, with operators being able to offer online casino games before the treaty takes effect, but already complying with all approved terms.

“This state treaty was a very tough task. And, consequently, it is a strong sign of how the system works in Germany and how to reach the right results through sometimes arduous negotiations ”, said the state governor, Armin Laschet.

He concluded: “A joint effort was made to resolve a problem that seemed unsolvable for years. The conflicts of interests, needs and concerns of all 16 states were taken into account ”.