The Rise of the iGaming Industry in Germany
Germany is one of the European countries that regulate the iGaming industry quite effectively. There are plenty of rules and laws in place and thanks to that fact, players here are well-protected from unauthorized sites.
That is exactly what we are going to cover in this article. We’ll be taking a closer look at the iGaming industry in Germany and see whether online casinos can operate legally, do they need a license, how are they regulated, etc. Let’s start breaking down the details.
Is Online Gambling Legal in Germany?
The single most important thing that concerns online gambling in Germany is its legal status. According to the Interstate Treaty on Gambling, online gambling is considered legal in this country. Thanks to that fact, players can access online casinos and online sportsbooks.
However, in order for the gambling operator to offer its services to German players legally, it needs to be licensed and regulated. We will talk about the regulator more later on as currently, we will put a bit of a focus on the iGaming laws.
We mentioned that online gambling is included in the Interstate Treaty on Gambling. The new Interstate Treaty on Gambling was ratified by the states in Germany in March 2021 and it was put in effect on July 1 of the same year.
Before the new Interstate Treaty on Gambling was ratified, online gambling in Germany was considered illegal. However, with the new amendments, operators can obtain licenses and offer numerous online casino games, including online slots and online poker.
Applying for an IGaming License in Germany
Even though there’s no limit on the number of licenses that operators can receive for online slots, sports betting and online poker, there’s a limited number of licenses that can be issued for online casino games.
Hence, the number of licenses must be equivalent to the number of casinos operating in the federal state.
To receive a license, the applicant must be compatible with the objective of the Interstate Treaty on Gambling. That includes player and youth protection, channelling the gambling desire in supervised legal channels, preventing the creation of addictive behaviour, etc.
Then, in order to obtain a license for public games, general prerequisites need to be respected. That includes:
- No money lending services are allowed
- Barred players and minors need to be excluded
- Creation of separate areas on the same domain for different games of chance
- Social concept adoption
Special requirements for companies that offer slots, online poker and sports betting include personal liability, economic capability (possession of enough equity for long-term operations) and transparency and security of the featured games of chance.
One thing that is worth noting is throughout the years, Germany’s Interstate Treaty on Gambling has been under a lot of scrutiny for failing to be in compliance with EU laws and regulations concerning gambling.
As for the legal online gambling age in Germany, you need to be at least 18 years old to register and play at an online casino.
iGaming Regulator in Germany
In terms of which authority regulates online casinos in Germany, the country has a unique system. At the moment, online gambling is regulated on a state level. However, since each of the 16 states has certain laws, regulating the industry proved to be quite complicated.
That is why they agreed on some form of unity. In other words, they greenlit common principles in some areas of the Interstate Treaty on Gambling. In the sports betting sector, the state of Hesse is authorized to work on behalf of all states.
On the other hand, the State Administration Office of Saxony-Anhalt acts as the licensing authority in the video slots and online poker sectors. As for general online casino operations, only Schleswig-Holstein, the northernmost state in Germany, is allowed to provide operators with licenses.
New Changes Coming in 2023
However, iGaming regulation in the country is set to change. With the amendment to the Interstate Treaty on Gambling in 2021, the law also indicates the creation of the Common Gaming Authority of the Federal States. This regulator is set to start its operations in 2023.
This regulator’s responsibility is to act as a supervisory authority for cross-border gambling. It was also tasked with monitoring the latest developments in the iGaming sector and promotion of the research in that area.
Starting from 2023, the new Joint Gambling Authority, which will be based in Saxony-Anhalt will be in charge of licensing and regulating entities in the sports betting and online casino sections.
Types of Online Gambling Activities That You Can Enjoy in Germany
Thanks to the Interstate Treaty on Gambling 2021, the online gambling sector in Germany has been vastly liberalized and there are plenty of gambling activities that are up for grabs. Just as mentioned earlier, in order to participate in these activities, players need to be at least 18 years old.
Once they register an account at a licensed and regulated operator, they can deposit funds using credit and debit cards, e-wallets, mobile-pay methods, etc. As for the available games, they include:
- Lottery
- Online casino and poker
- Sports betting
- Horse racing betting
Lottery
The 6 aus 49 German Lotto is the most popular lottery game in Germany. It takes place each Wednesday and Saturday. Additional games here include Glücksspirale, Super6 and Spiel77. One interesting fact about the lottery in Germany is the fact that the biggest recorded win is €45,382,458, a prize that was shared by 3 people and was won on December 5, 2007.
Online Casino and Poker
Just as mentioned earlier, online gambling activities were forbidden until 2021, when the Interstate Treaty on Gambling was amended. Thanks to the changes, online casino games such as online poker, slots, baccarat, blackjack and roulette were all legalized.
Sports Betting
Online sports betting is one of the most popular online wagering activities in Germany and you will be pleased to know that there are plenty of sports on which you can bet. That includes football, basketball, tennis, MMA, boxing, etc.
Horse Racing Betting
Horse racing and betting have gone side-by-side for many years and this sport is often connected to betting. German punters can rest assured knowing that they can bet on various international horse racing competitions via sportsbooks and online casinos that offer sportsbook services.
Germany’s Deposit Limit is Also Worth A Mention
One important thing about the iGaming industry in Germany is the fact that there’s a maximum limit on the monthly deposits of players. According to the Interstate Treaty on Gambling, players can deposit a maximum of €1,000 each month, regardless of which German operator they play at.
This rule is enforced by authorities as a way to enforce responsible gambling and prevent players from developing gambling harm.
Under certain circumstances, the law states that the maximum cross-operator deposit limit can be increased to €30,000. Speaking of cross-operator depositing, it is also worth noting that Germany has developed the LUGAS system which ensures that the deposit limit is not breached.
