EGBA suggests policy adjustments for German market
Before a meeting of German lawmakers in Nordrhein-Westphalen, the European Gaming and Betting Association (EGBA) has proposed a string of changes for re-regulation of the country’s igaming market.
EGBA, comprising of bet365, Kindred Group, Betsson, William Hill and GVC Holdings, said that it welcomed progress towards the development of a permanent regulatory model to allow operators to run online sports betting and casinos.
However, it said the terms outlined in the new State Treaty (Glücksspielneuregulierungstaatsvertrag/GlüNeuRStV) are “inconsistent, overly restrictive in the context of current consumer demand, and jeopardise the task of developing a fully functioning online gambling market in Germany”.
Though a new regulatory framework is desperately needed, the new proposals could worsen an already dysfunctional system, EGBA secretary general Maarten Haijer explained. He said, “An attractive product offer is absolutely essential to achieving a safe and well-channelled gambling environment – but the proposed restrictions would prevent this.”
The German market is highly fragmented and restricted due to the prohibition of online casino and strict controls on sports betting enforced by the third amended State Treaty, he pointed.
As per EGBA, this had pushed German gamblers to offshore websites, pointing out that the Düsseldorf Institute for Competition Economics (DICE) estimated only 1.8% of igaming action took place on regulated sites.
EGBA has asked German lawmakers to relax the proposed restrictions in the GlüNeuRStV for online casinos. It says restrictions such as separate licences for online table games and slots, should be removed. An opt-out for German states, to allow them to either continue prohibiting online casino or give the state lottery a monopoly over them, should also be eliminated.
Modifications should also be made to sports wagering, to remove widespread restrictions on bet types, and limits on in-play betting taken out, EGBA added. The GlüNeuRStV asserts the strict controls of the third State Treaty, such as capping in-play bets to final score or next goalscorer markets.
EGBA said a binding deposit limit across all products and providers of €1,000 would be hard to implement, and potentially infringe data protection regulations. Instead, it suggests voluntary deposit limits to control player spending.
The lawmakers are expected to reach a final decision at the next meeting of the state Minister-Presidents on 5 March, before the process of obtaining European Commission approval for the GlüNeuRStV begins.
The third amended State Treaty expires on June 30, 2021, and the final regulations must be in place by then.
