All licensees in Germany adhere to certain rules and regulations and cut online casino ties. The directive authored by the Regional Council of Darmstadt, also represents the state of Hesse.
Casino operators looking to secure licenses in the German market will now have to commit themselves on ceasing to operate any form of illegal or unregulated gambling. Whether directly or indirectly via affiliate businesses, operators will have to adhere to the council’s strict directive in their gambling activities, upon acquiring betting licenses.
Apart from that, casino owners need to provide a commitment letter as additional information while applying for licenses. Alongside these documents will be financial information and other jurisdictions. Currently, sports’ betting is the only form of gambling allowed in the German market. This also means that any operator conducting any form of illegal gambling will have to adhere to the rules or withdraw before beginning their operations.
Informational event to all licensees
The Council affirmed that the licensing process would commence from 2020. Any other application that people file before the given date must be submitted on 2nd February 2020 and treated as such. Besides, an informational event will be held ahead of the process, launching for anyone looking to renew their licenses. The licensees will be allowed to ask questions regarding the minimum requirements of securing a license and much more. Event registration will end on 2nd August.
The progress on licenses came in despite the standstill period of the European Commission, where European Union member states are required to review their legislation. Besides, it was also after the period will be extended to 27th August and Malta provided their opinion on the issue. Although the response t Malta’s submission had not been provided, there will be an automatic one-month extension to the standstill and Germany will be required to provide an insight on any issues or concerns that would have been raised.
DOCV blamed for legislation errors
According to a submission presented to the EC, the Germany Online Casino Association (DOCV) blamed the legislation for lack of improvements in state control, consumer protection, and other legal certainties. This would be because of the prohibition and enactment of laws governing online casino games. The association further stated that it would pave the way for more liberal regulatory models that might be introduced. In addition, the treaty governing the states expires on 30th June 2021.
“Channeling the existing demand for online gambling offerings by creating a modern legal system would on the one hand create legal certainty, improve the range of products on offer, remove barriers to market entry and bring black market operators in the regulated sector,” said Dirk Querman, the president of DOCV. He further added that the enactment of these rules would pave the way for effective regulatory action to be taken to the unlawful and non-compliant casino operators in the country.
Although the treaty has been signed by key parties such as Minister-Presidents of the state, it must also be signed by the 16 member states of Germany before it can be rendered active. What’s more, it should happen before 31st December 2019. Currently, the legislation has its limits on 15 states in the sports betting category and a monthly spending limit of $1,000.
This limit applies to all customers. A tax of 5% turnover will be applied on the licensees. Nonetheless, Schleswig-Holstein will have no restrictions on their products but will be required to utilize a liberalized method of gambling but with a 20% tax on gross revenue. Notably, these rules will start expiring on 30th June 2021.
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