GVC Holdings’ director of regulatory affairs has come out against revised German gaming regulations, saying the new restrictions will send more bettors to black market bookies.
Lycka said the new rules on products and advertising, “far from opening up the market,” will create “a wholly unfulfilling gaming experience for customers” and alienate would-be legal bettors.
According to SBC News, the new measures include:
- A ban on live streaming on betting sites
- No commercial advertising on radio and internet for virtual slot machines, online poker and casino games between 6 a.m. and 9 p.m.
- A one-minute delay when customers switch between different games, going from sports betting to virtual slots, for example
- A five-minute delay when switching among online gambling sites
- A €1 stake limit on virtual slot machines
- In-play sports betting limited to the final score and associated markets
Lycka said such limitations will enrich illegal operators, who conduct business with “zero responsibility, zero protection and zero tax being paid.”
“Unfortunately, from the perspective of player protection, many of these requirements are neither effective nor necessary. What they achieve, instead, is the creation of a wholly unfulfilling gaming experience for customers, rendering the measures counterproductive to their stated aim of channeling players towards licensed and legal providers. Far from opening up the market, this is a gaming revolution built on sand.”
In addition, the new German gambling treaty will record all player data “in a blanket matter without any pattern of problematic behavior necessarily existing’, which under the eyes of the German Federal Constitutional Court is a ‘particularly serious encroachment on fundamental rights,” he said.
The new regulations, which were designed to provide player safeguards, could prove counterproductive, Lycka argued. “In principle, the new German measures are an important step towards modern regulation of people’s digital lives. However, Germany has missed a massive opportunity to follow the likes of Denmark, Spain and Italy, which allow all products in a competitive open permit model and is in compliance with EU law.
“In order to achieve the goal of the new state treaty—channeling players towards licensed and legal providers—German lawmakers must work with the European Commission to devise a safe, user-friendly and attractive gaming sector.”
In related news, German casino association Deutsche Spielbankenverband (DSbV) has issued a statement saying blocking payments to unlicensed iGaming operators should be at the “top of the agenda” for lawmakers in the country.
According to German media, the DSbV made its statement following the Wirecard scandal, concerning the fintech firm that somehow misplaced $2 billion in 2019. In its statement, the DSbv said fraudulent activities by the company were known to German regulators since 2017 as disclosed in the Panama Papers.
DSbv CEO Otto Wulferding said German banks knowingly enabled unlicensed online gambling transactions.
“Online casinos without a German license are evading the regulatory framework in Germany,” concluded Wulferding. “They do not meet the requirements that apply to licensed casinos. This means that the guest can carry out their bets and thus deposits and withdrawals safely and reliably.”
