State Treaty on Gambling: How are online casinos regulated in Germany?

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The new State Treaty on Gambling (GlüStV) has been legally binding since July 2021 and, under certain aspects, legitimizes online casinos to legally offer their products in Germany. However, the legalization of the online market comes with many measures and regulations that serve to control, monitor, and regulate the industry.

Legalization of online casinos

Online gambling was completely banned in Germany for a long time. Although Schleswig-Holstein attempted a liberalization process in 2012, it was relatively quickly integrated back into the restrictive attitude of the other federal states. It was not until 2019 that the prime ministers joined forces to try to equip the local gaming system with modern and transparent rules. The focus was on the online market.

The new State Treaty on Gambling was designed to legalize digital gambling within a regulatory framework. Player and youth protection should be in place at all times. To this end, politicians implemented many different measures in the legal document. Online gaming libraries have been allowed to operate legally in Germany since July 2021, but they have to adhere to strict and sometimes restrictive gaming rules.

Gambling license – The most important component!

By far the most important measure of the GlüStV relates to gaming licenses. In this country, only online gaming libraries that have official and recognized licenses are classified as legal.

Such concessions are issued by well-known and established gambling authorities. In the territory of the European Union, the licenses from Malta, Gibraltar, and Great Britain are among the most prestigious. They are recognized throughout the EU, as the respective authorities only issue their licenses to qualified gambling companies.

Germany now also issues its own gambling license. The award procedure falls within the area of ​​responsibility of the Joint Gaming Authority of the Federal States (GGL). It is based in Halle (Saale) and acts as the overriding regulatory and monitoring body in the Federal Republic.

Although seriousness, security, and player protection are the focus of all EU gaming authorities in the evaluation process of online gaming libraries, the respective authorities specify various measures. This creates differences between the digital casinos (바카라사이트 추천).

Regulatory measures of the New State Treaty on Gambling

The German gaming license is considered to be particularly strict in a European comparison, but also particularly secure. The protection of players and minors enjoys absolute priority in the local online market. The gaming community should be protected from fraudulent activities, the black market should be pushed back and gambling addiction effectively combated. In order to achieve these goals, the State Treaty on Gambling stipulates the following measures that players in online casinos with a German license must adhere to:

There is a monthly deposit limit for gambling on the Internet. Each player may not spend more than 1,000 euros. This is intended to ensure proportionality and to protect people from the potential dangers of gambling addiction.

A limit also applies to popular slot games. Since July 2021, the various slots in the online casinos have been designed in such a way that the stake limit of EUR 1.00 per spin cannot be exceeded. Here, too, politics is aimed at proportionality and self-protection. Smaller amounts are of course still possible.
Another restrictive measure that applies to slot games is the so-called five-second rule. This is a five-second pause between spins. The cooldown period is designed to prevent players from losing control.

One of the most drastic measures of the GlüStV is the reduced range of games. Online casinos with a German license are prohibited from offering classic table games such as blackjack, roulette, or baccarat. The hugely popular live games are also banned. As a result, only slot machines remain to choose from.

The new legal framework has created a cross-provider ban file that tracks every player. During the registration process at an online casino, each player must first be identified and authenticated. The personal data then flows into the lock file – just like any game activity. The lock file checks whether the monthly deposit limit is adhered to keeps an eye on people’s gaming behavior, and prevents them from logging in on multiple platforms at the same time.

The effort, additional costs & cuts – online gaming libraries under the New State Treaty on Gambling

The regulatory measures of the GlüStV not only affect the German gaming community but also include the operators. The new legislation represents a major effort for many online casinos. In many areas of business, gaming providers have to reckon with higher administrative workloads, additional costs, and cuts in day-to-day processes.