The heads of Germany’s 16 states have finally signaled their intention to modernize the country’s online gambling regulatory system into an effective one that abides by European law. The 16 leaders are currently taking part in an annual conference in Warnemünde.
According to a press release published on Friday, there have been preliminary talks on potential reforms in Germany’s Interstate Treaty on Gambling, ones aimed to exert order in the way online gambling options are provided in the country.
Germans states started adopting their latest gambling law in 2012. The Interstate Treaty on Gambling was implemented nationwide a year later, when Schleswig-Holstein became the last state to compel compliance with it. The law allowed for the provision of online sports betting options. However, it put a cap on the number of gambling companies that could operate in the local market to just 20. The measure was highly disapproved and scolded by European authorities, operators, and other involved parties.
The heads of all 16 states have now showed openness to discuss the limit’s elimination and to implement a licensure system under which interested operators should meet certain standards, in order to obtain a license. As written in Friday’s statement, the 16 states’ markets may be opened for online casino options, as well. However, there was no particular mention of online poker.
Friday’s statement also revealed that lawmakers may replace the previously introduced €1,000 monthly wagering limit with a €1,000 monthly loss limit.
Last but not least, it all show that German legislators have agreed to research online gambling regulations in other European jurisdictions to make sure the country’s new regulatory system will not be told off by Europe’s top authorities.
Earlier this year, the Court of Justice for the European Union declared Germany’s Interstate Treaty on Gambling illegal. That meant that the law could not be enforced and that operators that acted against it could not be subjected to legal proceedings. The treaty took another blow later in the year, this time by a German court.
According to a ruling by the Fifth Chamber of the Administrative Court of Wiesbaden, the 20 licenses cap violated European Union-wide standards for the “freedom to provide services.” As a member state, Germany is required to comply with European laws and these have primacy over its own. In other words, the Interstate Treaty on Gambling has repeatedly been declared unconstitutional on several occasions over the years.
German legislators will need quite some time to learn the ropes of how to create a modern and effective regulatory framework that pleases the European Union. However, their recent indication of willingness to do so is a small but important step towards achieving that objective.
