Hesse Plans to Separate Itself from State Gambling Treaty

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The German state of Hesse’s current ruling coalition is looking to exit the State Treaty on Gambling and formulate its own regulations if there is no development in the Federal Framework front by the end of the current year.

The Schwarz-Grün coalition of the Christian Democratic Unionists and Green Party stated in its agreement spelling out the main goal for the government’s 5-year term that it would work towards establishing a system that would protect players.

To carry this out, the coalition stated that a proper framework was required; one that complies with European law. Other than that, it also stated that licenses should be given out in accordance with the applicant’s quality, rather than limiting the number of certifications.

Disagreement on Model

If the 16 federal states in Germany are unable to come to an agreement on a model that can overhaul the controversial State Treaty on Gambling by the end of the year, the coalition has stated that it would cut itself out from the treaty.

The end of 2019 is also the same time the break clause in the treaty becomes activated, which will allow Hesse to make an exit without any problems.

The coalition wants to boost funding for Landessportbund Hessen, the association that represents all the association and sporting clubs in the state, via an expanded gambling regulation bill. It wants to makes sure that the sports funding channeled via gambling is directed towards certain key objectives. This includes providing support for competitive sports, increase the representation of disabled people in sports, and boosting sports participation for health.

Hesse’s goals will make the State Treaty invalid.

Failed Amendment

The State Treaty was put into effect in 2012 and since then, it has been discredited in several legal battles, leaving operators in confusion. An attempt was made, in 2017, to remove the 20-license limit clause. However, it failed.

The revised State Treaty was unable to gain approval from the Schleswig-Holstein and Nordrhein-Westphalen governments. As a result, it could not be put into force. For amended versions of the treaty to be established, signatures from all participating state legislatures are required.

Hesse, apart from focusing on online gaming, is also looking to transfer the monitoring of slot machines to the federal states. The coalition intends to bring about a motion in the Bundesrat regarding this.

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