Online Casino Legislation in Germany will Change in 2021
Germany’s online gambling market will see many positive changes soon as online casinos and online poker rooms may be legalized from July 1, 2021. The following year, German players can play online slots and table games at online casinos licensed by the German gambling authority (under deutsche casino lizenz).
However, Germany is not very comfortable with legalizing online gambling. By legalizing online casinos and online poker rooms in a restricted way, the country hopes to not only boost its revenue but also protect residents from gambling harm.
Here are a few restrictions that you may expect in Germany’s legalized online gambling industry:
- The bet per spin on online slots is restricted to €1.
- Online slots cannot have the autoplay feature or jackpots.
- Individual German states have the freedom to impose additional restrictions whenever required.
- Gambling advertisements are not permitted from 6:00 to 21:00.
Gambling in Germany – Interesting Facts and Figures
Here are some interesting facts and figures about gambling in Germany:
- Germany established its first casino in 1720. It was also one of the first casinos in the world.
- In May 2013, Germany launched its first online casino. Called Casino Deutschland, it started offering online casino games under a license granted by Schleswig Holstein. However, it couldn’t renew its license because Schleswig Holstein decided to join the Gambling Treaty.
- Germany’s gross gaming revenue in 2018 was €14.2 billion. Of this, €10 billion came from land-based casinos, lottery games, and slot machines and €3 billion came from licensed online gambling activities.
- The illegal gambling market in Germany is worth €4 billion to €22 billion.
- In 2019, the revenue of the German gambling industry increased to an estimated €16.9 billion.
- In 2018, more than 200,000 people were employed in the gambling industry.
- 38% of the bets placed in Germany are on sports events, 34% are on casino games, and 24% are on poker.
- Football is Germany’s favourite sport, but Germans also love betting on horse racing, tennis, ice hockey, handball, and basketball.
- In 2018, 0.56% of German players were found to be problem gamblers. 0.31% of them were pathological gamblers.
Germany’s Illegal Gambling Market
Most of the illegal gambling in Germany is online. This may change in 2021 when the country legalizes online casinos and online poker rooms, giving Germans the opportunity to play at licensed online gambling sites.
Currently, online gambling is still prohibited in Germany, a fact that does not stop Germans from signing up at foreign online casinos.
Will Germans play exclusively at German-licensed online gambling sites from 2021? That remains to be seen. Germany’s regulated online gambling industry will be heavily restricted. Restrictions on bets, deposits, jackpots and prizes, and so on may still force Germans to sign up at offshore online casinos, where they can enjoy unrestricted gambling services.
What to Expect in 2021
Germany has approved a set of new regulations, which will lead to the expansion of its iGaming industry. However, these regulations need to get the approval of all federal states before they can be submitted to the European Commission.
If all goes well, the new gambling laws will be enforced in July 2021, giving residents access to a wide range of online casinos and online poker rooms licensed in Germany. Meanwhile, a set of temporary gambling laws, introduced in January 2020, will continue to be effective.
What are those temporary gambling laws?
On January 1, 2020, the third amendment to the existing State Gambling Treaty was enforced. This amendment granted legal certainty to Germany’s existing sports betting industry. It launched a brand new procedure of applying for sports betting licenses. It also threw open Germany’s sports betting market to international operators of online sportsbooks. As a result, German sports bettors got a wider range of licensed products to choose from.
The third amendment made it mandatory for sportsbook operators to obtain a German license to run their business in Germany. However, it does not permit international operators to be based in Germany. Licenses thus received will be valid till December 31, 2022 and operators have to apply for a license once again on January 1, 2023.
In 2021, you can expect a brand new gambling regulator in Germany. It will be headquartered in Saxony-Anhalt although Hesse, Baden-Wurttemberg, Schleswig-Holstein, and Nordrhein-Westfalen also wanted to host it.
You can also expect plenty of restrictions, such as the following:
- You won’t be able to deposit more than €1000 per month in your online gambling account.
- In-play betting will be limited to the next goal scorer and the final result of the match.
- Operators cannot place advertisements from 6:00 a.m. to 9:00 p.m. This restriction has caught flak in the past. One of its biggest critics was the media firm VAUNET, which pointed out that such advertising won’t serve any purpose.
Online Gambling in Germany FAQs
Q1: Are online casinos legal in Germany?
A: Currently, online casinos are not legal in Germany. But after July 2021, Germans may be able to play at online casinos licensed in their own country. Right now, however, you have to play at any licensed offshore online casino that accepts you.
Q2: How safe is it to play at offshore online casinos?
A: You are safe at offshore online casinos as long as they are reputed, experienced, and licensed. Research them before signing up.
Q3: If I play at an offshore online casino and win a real money jackpot, do I have to pay taxes on it?
A: No. Only operators of gambling services have to pay taxes in Germany. Players don’t have to pay any taxes.
Q4: What is the legal age to gamble online in Germany?
A: The legal age to gamble online in Germany is 18.
Q5: If I become a problem gambler while playing at an offshore online casino, what should I do?
A: You have to first request self-exclusion. Then you have to approach any non-profit support organization in Germany, which helps players overcome problem gambling and gambling addiction.