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The most important facts about the new state treaty on gambling

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The new State Treaty on Gambling has also changed the landscape of sports betting. In future, all providers on the network will need an official license. In addition, stricter regulations will apply from 2021.

New regulations for gambling in Germany

It seems that the revolution has succeeded, as the new State Treaty on Gambling comes into force. Previously, years of discussions went into the country between the federal states, which were able to agree on uniform regulations. These then formed the basis and the framework conditions for the new treaty, which also regulates sports betting in Germany. Even though the betting sector is left out of many of the provisions, there are changes for the core businesses.

For example, users can still open an account with special benefits in order to first get an overview of the betting offer of the portal operators. Reputable and good providers like Oddspedia have demo accounts and many possibilities and offers to give their users an overview of the settings and functions for free.

When will the new state treaty on gambling come into force?

Officially, the State Treaty regulates the relationship between betting providers and the state. It is intended to clarify the question of when gambling is permissible in Germany. A transitional regulation came into force in October 2020. The new measures from the State Treaty on Gambling have been binding since 1 July 2021. The main changes concern the gambling license in Germany.

Every provider is now required to apply for this license. Once it is granted, customers are allowed to access the offer throughout Germany without any problems. Those who do not have a German license are no longer allowed to operate gambling from this effective date. The major providers in the direct sports betting comparison have already obtained their German license at an earlier date.

The most important requirements in the state treaty on gambling

The many new regulations and measures with regard to the sports betting license apply to the protection of customers. This is to prevent betting addiction or gambling addiction. Thus, only those platforms are granted a license that are effectively dedicated to combating addiction. This includes limits on deposits as well as restrictions on betting offers and live betting. In addition, the providers undertake to introduce measures to protect customers from gambling addiction.

Licenses and taxes on sports betting remain

Since 2012, all providers of sports betting in Germany have paid a tax. A tax of 5 % is levied on every bet placed. Most associations criticize this tax because it is only levied on winnings and not on every bet. However, a look at the State Treaty on Gambling shows that this tax has remained in place until today. This means that sports betting providers have to cede 5% tax for each bet. Players should therefore be cautious when providers advertise that the tax will no longer apply; this is not the case.

What changes are in store for players?

The nationwide betting license is also intended to give the providers a certain degree of legal certainty. The measures protect players from unmanageable losses. In concrete terms, this means a deposit limit of € 1,000 per month. Every provider of a sports betting platform is required to ask its users to specify a deposit limit before they register.

Those who then set this limit higher can only do so with a waiting period of seven days. As of now, there is also the so-called Panic Button. If a player himself notices that he is increasingly losing control over his behavior, he can have himself blocked for 24 hours via this button. At the same time, gambling behavior is to be controlled and monitored seamlessly. This task is taken over by a central office that has been set up in Hesse. This digital query system increases the pressure on portal operators to comply with the rules.

Story by Chris Hardy

Augusta Health Augusta Free Press Kris McMackin CPA
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