Gambling business in Germany
Gambling business in Germany is legalized. The revenue of German casinos in 2015 amounted to 641 million EUR. The country is in fourth place among European countries in terms of casino profitability. And this despite high taxes, which are considered one of the most onerous in Europe.
The general ground business is governed by Interstate Treaty on Gambling 2012. Additional laws are enacted separately by each of the 16 states. Online gambling is prohibited.
More than 60 casinos operate in Germany. Five and a half million people visit them every year. The staff of gambling establishments is about 5,000 employees.
Gambling legislation
The main law in the German gambling business is Interstate Treaty on Gambling 2012. It defines the protection of users, protection against fraud and measures against the illegal market. The law was passed by sixteen states in the same 2012. Only Schleswig-Holstein accepted it in 2013.
The state of Schleswig-Holstein in January 2012 proposed its own law, which issued 47 licenses for gambling establishments. The difference with this act was that it allowed online business. But then the government changed, and the province adopted a common Interstate Treaty on Gambling.
Slot machines are governed by federal law and the Trade Regulation Act and the Gaming Ordinance. Horse racing is controlled by the Federal Race Betting and Lottery Act of 1922 (as amended on August 31, 2016).
The organization of illegal games is punishable under two articles of the German Criminal Code - 284 and 285.
The states form their own Casino Acts and Casino Ordinances separately, which regulate the gambling business locally.
The age limit is 18 years old. Land-based casinos in Baden-Württemberg and Bavaria do not allow visitors under the age of 21.
Gambling regulators and gambling laws
Gambling regulators in Germany are state ministers or senators. In each state, ministers or senators have primary responsibility. They also appoint subordinate bodies responsible for the organization of the gambling business on the ground.
The local authorities are responsible for the slot machines, on whose territory the machines are located. They also license and inspect slots. Sports betting points also belong to their powers.
There are a few more regulators:
There is also a Gambling Committee made up of representatives from all German states. They are also involved in sports betting licensing and Advertising Guidelines projects.
Conditions for obtaining a license in a gambling jurisdiction
Licenses to operate land-based casinos in Germany are issued by state authorities. The number of licenses is limited by local law. Somewhere permits are issued to private operators, and somewhere they are completely prohibited from running a gambling business. Casino licenses are issued through a tender.
Typically, casino licenses are valid for 10 years with the possibility of renewal for another 5 years. The cost is calculated based on the estimated gross income of the establishment. Typically, a digit contains five to six zeros.
Licenses for sports betting sites are issued in the same way. Each state limits the number of points. For example, in Bavaria there can be 400 outlets, and in Hamburg - 200.
Licenses for slot machines outside of casinos (in restaurants or arcade rooms) are not limited by law in number. However, licenses for arcade halls are very tightly regulated.
Such facilities in many states must be at a certain distance from schools, universities and addiction treatment centers. The maximum number of slot machines for one hall is 12 machines. Restaurants and bars must have no more than three slot machines. The cost of a license for an arcade hall is 150-3000 EUR depending on the state.
Bookmaker or sweepstakes licenses are governed by the Race Betting Lottery Act and are only issued to horse tracks or horse breeders.
Licensed varieties of gambling
There is no specific list of permitted and prohibited games. However, some games are more heavily regulated than others. For example, Germany has established a state monopoly on the lottery. Sports betting is subject to a number of strict restrictions, and online gambling is prohibited at all.
The following types of gambling are available in Germany:
Each state has its own rules for regulating gambling. Slot machines are mostly regulated by federal law.
Online gambling in the country
Online gambling in Germany is almost completely banned. Only 20 licenses for online sports betting have been issued. On the other hand, online betting on horse racing and promo licenses are allowed.
Licensing applicants must prove that they have sufficient financial resources, are trustworthy and with the necessary experience. They also prove a sufficient IT and technical supply.
Modern licenses for online activities are valid until the end of June 2019, although there is a possibility that the authorities will extend this period until 2024. Thereafter, the pilot period of the current legislation will end.
The cost of an online sports betting license is calculated on the expected income. The minimum rate is 0.01% for annual income up to EUR 30 million.
Popular slot machines in the country
Among the most popular slot machines are machines from manufacturers that are popular all over the world: Greentube, Microgaming, Playtech and others. Here is an example of the most popular slots on German sites:
The slot machines of the Austrian giant Greentube have proven themselves over the years. They are often highly volatile, with a fairly simple and almost never changing interface, and they also offer high payouts for expensive symbols.
More modern manufacturers like Microgaming and Playtech attract attention with their bright and unusual gameplay, favorite characters and a lot of bonuses. Such slots often have multilevel free spins or interactive additional games.
Gambling software developers
There are two major manufacturers based in Germany:
Bally Wulff Automaten is a cabinet and slot machine manufacturer. The developer is based in Berlin and mainly focuses on the German market. The company was founded in 1950. The company is now owned by the SCHMIDT Group, a major German supplier of IT products.
Gauselmann Group is a corporation that manufactures games and slot machines, cabinets, builds entertainment centers and casinos, develops solutions for sports betting and bingo. Also supplies systems for financial management.
conclusions
Germany is losing a lot by banning online gambling. The so-called gray market for online games is estimated annually at up to 960 million EUR. The online marketplace generates up to 8% of total revenue. Together with this, large tax revenues are lost.
The German land market continues to flourish. Up to EUR 24 billion of revenue continues to flow annually. But it should be borne in mind that online business is gaining more and more positions, and you should not hesitate to properly regulate it.