The new Germany State Treaty of Gambling has been approved by its 16 states, lifting the cap on the number of sports betting licenses allowed. But it may never go into effect.
The new treaty will take effect next January 1. Besides lifting the cap on the number of legal licenses, the treaty also creates a process for enforcement against illegal sports betting operators.
The previous treaty adopted in 2012 had to be scrapped due to legal challenges. It had limited the number of sports betting licenses to 20. The 20 licenses were awarded in 2014, but because of court challenges by those who weren’t able to get licenses, none were activated.
Although the treaty has been approved, the 16 state legislatures still need to ratify the treaty. This is a high hill to climb since the new gambling regulations are controversial and have been criticized by the European Commission, which said it doesn’t address the problems posed by the first treaty.
The German Sports Betting Association, with members of both domestic and international operators, called the approval “a small step in the right direction.”
