Gambling operator GVC Holdings said it considers Germany’s new online gambling law, which will come into force in July 2021, incompatible with EU directives, and warned that many of the restrictions it contains will encourage customers to seek alternatives on the black market.
In an extensive article recently published on the Politico website.eu, GVC Regulatory Director Martin Lika discussed why, in his opinion, the new German regulatory framework for online casinos and sports betting is ineffective and unnecessarily restrictive in terms of player protection.
This spring, the chapters of Germany’s 16 federal states agreed on a regulatory framework that will reorganize the local online gambling market to allow online casino and sports betting services. According to the Third State Treaty on Gambling, which entered into force in January and will remain in effect until mid-2021, only digital sports betting is allowed in the country.
According to GVC’s director of regulatory affairs, the structure, which will be implemented from mid-2021, will include compromise rules between 16 federal states in Germany, which, as the saying goes, “there are opponents of private gambling markets.”
Some of the measures proposed in the yet-to-be-implemented law include a ban on live sporting events on betting sites, a one-minute delay for customers when they switch between different products on the same Internet domain, and a five-minute delay when switching between different gaming sites. as well as a € 1 limit on online slots bets. In addition, licensed online gambling operators will not be able to advertise their products on the radio and on the Internet from 6am to 9pm.
Locally licensed products will be much less attractive and less competitive than their unlicensed counterparts if all of these restrictions come into effect next year, Lycki said. This will encourage clients to look for alternatives on the black market, where “zero liability, zero protection and zero tax payable”.