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Sports Betting Licensing Regime Solidified in Germany

After long discussions and an even lengthier waiting period, a German licensing regime for sports betting has passed. It’s real and it is here. Fifteen licenses have been awarded, that will allow operators who meet these strict requirements and criteria to expand their online offerings throughout all of Germany.

In addition, the transition period from October 15, 2020 onwards, also gives casino and poker operators a legal framework to meet new licensing requirements and further opens the market without the threat of prosecution. Under the temporary transition regime, operators must comply with the regulations that have been set out in the draft Gambling Treaty, GlüNeuRStV, which comes into force from July 1, 2021.

Stricter regulatory requirements
The news is a welcome development as this offers greater legislative clarity for operators preparing to meet the new requirements. While sports betting, online poker, and online casino games – including slots will now be permitted, criticism of the tight restrictions that come along with the legislations has been voiced strongly within Germany and throughout Europe. Rather than enticing players to move away from the black market, operators and associations fear such restrictions further support a black market for gambling.
Restrictions will include:

  • sports betting limit on live betting to markets with the final result or next scorer
  • slots subject to a Euro 1 stake limit, and must be offered separately to table games
  • no autoplay function and no jackpots
  • States now have a veto on whether to allow table games, and for lotteries, states have a monopoly over their product
  • mandatory deposit limit of €1,000 across all providers remains in effect
  • advertising restrictions prevent operators from advertising between 6am and 9pm

Illegal gambling and even gambling under the older legislative framework in Germany led to large player prevention and player protection deficits. As gaming companies prepare to meet licensing requirements, we recognize and congratulate those companies that have received their sports betting license. Meeting and having in place an effective technical and operational plan is a significant achievement. A Know Your Customer (KYC) solution should meet an operator’s compliance, security & fraud prevention requirements, and at the same time be able to meet high conversion rates, mitigate risk, avoid fines, and a offer products that meet customer demand. IDnow has been serving and meeting compliance and conversion rates for the banking and finance industry and other industries including gaming for numerous years. We have exceeded in our product offerings for KYC under tight Anti Money Laundering laws in Germany and throughout Europe and the EMEA regions. IDnow welcomes Germany solidifying its gambling regulatory regime in their effort to protect players. We are actively doing our part to support player prevention and protection for operators seeking German gambling licenses.

Current issue.

The KYC Insider - May/Jun 2021

Topics covered in this issue:

  • Upcoming: July 1, 2021 – Germany’s new Gambling Treaty Goes into Effect
  • Swiss Regulator -FINMA Allows Chip Reading for Remote Identification
  • Spanish Regulator Allows for Automated Identification Solution in Conjunction with a Qualified Electronic Signature
  • Revisions to Establish Contractual Relationships in Electronic Media - Turkey
  • Crypto Assets to be Registered with Central Bank of Ireland
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