Germany has been transitioning toward a federal regulated online casino market since the Interstate Treaty on Gambling (IST 2021) became law in July when the last German state ratified it.
Now operators can apply for permits to offer virtual slot and online poker as well as taking sports betting wagers when before such games were basically not permitted.
Those who have not yet been granted licenses are in a gray area: governed by the “transitional regime” that the federal states agreed to in October 2020. But within a few weeks operators who have licenses or not will be governed under IST 2021.
However, many critics complain that the licensing process is unworkable, and the taxes are too high.
State regulators are urging operators who have not yet applied for licenses to do so immediately or face legal enforcement. Illegal gambling operators face fines and penalties.
The regulatory framework is focusing on protecting consumers and minors. The states have agreed to deposit limits of 1,000 euros per month, a jackpot ban on virtual slot games and a tax of 5.3 percent on players’ stakes.
Operators being considered for a license are judged by their commercial reliability—including a business plan— that includes a certificate of good conduct. They are also required to show how they propose to combat money-laundering.
