New Gaming Laws May Fuel Black Market in Germany, Says GVC

Published: 11/08/2020 | Last Updated: 23/10/2020

Reading Time: 3 Min

Image: Shutterstock

A prominent industry leader, GVC has warned about the new gambling regulations in Germany which are set to come into effect in July 2021.

As per the new law, it would enable the registration to a specific number of online poker games, virtual slot machines, and sports betting providers. The regulation will also allow a selected number of online game suppliers.

Table of Contents

The Purpose of German Gambling Laws

The emergence of gaming laws in Germany is an outcome of an agreement among the federal states which provides powers and authority to place limits on their discretion on several aspects. Such limitations include the development of several gambling products along with gambling ads.

As per the customer’s protection and security, several requirements mentioned in the gambling laws are neither necessary nor effective. Instead, many of such laws will create unfulfilling gambling experience for the players and they may engage more towards unlicensed gaming websites.

Gambling Restrictions

The German gambling law imposes several restrictions on the following parameters which include:

A prohibition of live streaming on all betting websites
A ban on commercial ads on internet and radio for online poker, virtual slot machines and casino games between 6 am to 9 pm
If layers are found to switch between distinct games on one internet domain, there will be a minute delay for them. It will be done when they switch from sports betting to virtual sports machine.
When players tend to switch between distinct gambling websites, a five minutes delay will be imposed.
There will be €1 stake limit for all virtual slot machines.
A restriction for in-play sports betting in terms of associated markets and final score.

Recommendation By GVC On German Gambling Laws

GVC warns that such gambling laws are insufficient to protect the interests of the customers. According to the company, under the laws, the licensed products will become less competitive and attractive as compared to the unlicensed counterparts. As a result, players will move towards the black market.

Under the gambling regulation, 16 states in the country may ban online casinos games and set their own restrictions. This will, in turn, create an unfair playing field as per the European legislation.

This way the players can move towards the black market where there is no security, responsibility and tax being paid. The new gambling regulation needs transfer of customer’s personal information among authorities and operators to secure parallel play across the operators.

This type of data is involved under the supervision of the Charter of Fundamental Rights of Europe. The data is quite confidential as it enables them to make assessment for the health and financial situation of the players. However, as per the gambling laws of Germany, all the significant data for the players will be listed in a blanket manner without covering any concern for harmful behaviour.

Therefore, regular monitoring is mandatory. However, the federal states fail to set the essential distinction among addicted and non-addicted players. Moreover, the players who are not likely to become addicted do not require any sort of additional protection. The additional protection will be given to the ones whose names are recorded in the list of gambling addicts.

Before these German gambling laws come into force, the government of Germany must forward it to the European Commission for the approval. The commissioner will analyze the draft regulations as per the EU laws and address the potential for any illicit restrictions in terms of fundamental freedom.

In order to gain the objectives of the new state treaty, the lawmakers of Germany should work with the EU to devise engaging and safe gambling industry.