July 1 Germany’s Interstate Treaty of Gambling went into force, opening the way for legal online casinos and poker.
Previously those games were illegal, although Germany had a large gray market and many offshore sites that Germans resorted to. No laws prevented them from doing so, or offered state governments a way to discourage the sites from operating.
In September the government announced a “toleration period” that allowed operators to offer games without a license as long as they operated within the regulatory framework. Now, licenses are required from the newly established regulator, Glücksspielneuregulierungstaatsverag (GlüNeuRStV).
One rule that will impact casino profits is the maximum stake of €1 ($1.19) on slot machines. Another rule allows players to block themselves from playing for 24 hours. A third sets a 5-second interval between reel spins. All three rules are controversial. The tax rate of 5.3 percent has also drawn criticism from the industry and prompted PokerStars, Party Poker and Unibet to cut back on games they offer and for Betsson to leave the market.
