Bet365 is set to turn off its Germany-facing casino next week as the country prepares for the start of an interim regulatory regime that would enable interested international operators to obtain sports betting licenses from local authorities.
It emerged earlier this week that the British gambling giant has informed its affiliate partners in a recent email about the pending closure of its German casino and advised them to remove any promotional material of any of bet365’s non-sports betting products in German language by December 30.
In its email, the company noted that it would keep providing casino services in German language in Austria.
Bet365’s decision to shut its Germany-facing non-sports wagering products was certainly prompted by the soon-to-be-implemented regulatory changes in the country’s online gambling space.
After years of discussions and two previous failed attempts to implement a new gambling law, Germany’s 16 states this spring approved the Third Treaty on Gambling that paved the way for operators to conduct sports betting services in a regulated environment. Under the treaty’s provisions wagering is the only legal gambling activity on the territory of the country.
The measure provided for the introduction of an interim gambling regime that would take effect on January 1, 2020 and would run through mid-2021. It would enable interested operators to apply for sports betting licenses. A complete overhaul of Germany’s gambling regulations is expected to be approved by lawmakers by the end of that interim regime.
Hesse Warns Against Violations
In November, the Regional Council of Darmstadt, representing the German state of Hesse, warned gambling operators that would pursue sports betting licenses in Germany to halt any unauthorized operations, that is to say online casino and poker offering.
Any failure to shut their unauthorized operations could result in companies being prohibited from conducting sports betting activities in the country, it also became known.
Hesse is one of several states that seek the implementation of more liberal regulations that would authorize online casino and poker games, with Schleswig-Holstein and Rhineland-Palatinate. Lawmakers from these states have long argued that a laxer regime would help Germany in its effort to channel more customers away from unlicensed gambling websites.
Germany is a major market and many operators believe that their presence in that market could help them offset losses suffered elsewhere, particularly in the UK where a recent crackdown on the retail sector and a rumored crackdown on the digital sector are causing a lot of trouble for locally licensed gambling companies.
Bet365 has had overwhelming presence in gambling-related headlines in recent weeks. The company released its latest accounts, with those showing it had recorded revenue of £2.98 billion and had handled turnover of £64.5 billion in the 53 weeks to March 31, 2019.
It also emerged that Denise Coates, bet365’s CEO, received £323 million in compensation and thus became UK’s best-paid boss for the third year running. Including her latest pay, it is believed that Ms. Coates’ net worth is in the region of £9 billion.
Source: Bet365 to turn off casino in Germany
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