The new rules were only a few months old when Bremen’s interior senator called for them to be tightened. Ulrich Mäurer’s (SPD) initiative for the conference of interior ministers caused a stir: if virtual slot machines and online casino games such as poker or blackjack are allowed, then citizens should at least not be constantly bombarded with such addictive offers. In November, Mäurer put the idea of an advertising ban for online gambling and sports betting on the agenda of the state interior ministers. People are “bombarded” with gambling commercials, he said. “You can no longer avoid it.”
That is undisputed, and according to the new rules, the mostly flashy advertising for gambling offers will tend to increase even further. This Friday a year ago, after tough negotiations, the new State Treaty on Gambling came into force. The set of rules meant a turning point for the Federal Republic, a country of lottery players, state casinos and private casinos. Online gaming for money was banned here for decades.
However, they still existed: online casino games had grown into a huge market, sports betting providers didn’t have a permit, but they did have advertising contracts with Bundesliga clubs worth millions of euros; For a long time now, no football fan has escaped Tipico, Bwin, bet-at-home and their competitors. The providers, most of whom are based in other EU countries, created gray and black markets and earned billions, while the authorities, with responsibilities spread over 16 federal states, were overwhelmed.
“Confident in successfully pushing back the illegal gambling market.”
Now sports betting is legal, the first three online casinos have received permits. And there is a nationwide supervisory authority that will take on the first tasks from this Friday. The joint gaming authority of the federal states, GGL for short, based in Halle, should first of all prevent payment flows to illegal providers and, as a last resort, even be able to switch off websites. One is “confident of being able to successfully push back the illegal gambling market,” says Ronald Benter, co-head of GGL. That was exactly the intention of the state governments: after years of unsuccessful attempts to dry up the black market with strict bans, the state is now trying to do so by selectively allowing gambling offers.
The State Administration Office of Saxony-Anhalt (LVA) will be processing the applications from game providers until the GGL is also responsible for this from January. There were 71 in total, mainly for virtual slots, but also for online poker. The LVA announced on Thursday that eight applications had been withdrawn, twelve applications had been approved and one had been rejected. By the end of the year, the Gambling College, a committee of gambling consultants from the 16 federal states, will vote on the applications. After December 31st, this once powerful circle is history.
First permission for vending machine entrepreneurs Gauselmann
Gone are the days when Germany’s largest gaming group had no online games: the Gauselmann Group from Espelkamp in Westphalia, Merkur brand, still led by Paul Gauselmann, 87. Research on the Paradise Papers revealed in 2017 that his company circumvents the online ban by marketing software and games for online casinos without actually operating any. As a result, the group had largely withdrawn from the German market for online gambling.
Now Gauselmann, with the smiling sun in the logo, is first. His group of companies, the largest amusement arcade operator and machine manufacturer in Germany, received the first license to operate virtual machine games. Gauselmann is the first of three suppliers to be at the so-called white list. All officially permitted providers are listed there now and in the future. The second and third permits went to the sports betting companies Tipwin from Malta and Mybet from Austria.
So while the white list of permitted providers is slowly filling up one year after the state treaty came into force, the pursuit of illegal offers is also getting underway. According to the LVA, 148 cases of illegal gambling have been checked and 871 websites checked. Above all, the focus is on black market providers from outside the EU, which remain illegal anyway.
In 25 cases, the LVA has filed criminal charges for illegal organization of games of chance, participation in them or the illegal organization of lotteries. So far, public prosecutors have only occasionally taken action against prohibited games on the Internet. Only investigations in Frankfurt and Hamburg had become known. Not only is the penal code clear – anyone who organizes illegal games of chance can expect up to five years in prison in serious cases. It was also the case law: the Federal Administrative Court had confirmed the online ban that was in force at the time in autumn 2017.
Public prosecutors have so far been largely inactive
Not only the authorities in Halle are now hoping that with the new clarity on the gaming market, the law enforcement authorities will also act more strictly. In any case, there can no longer be any question of legal uncertainty. However, customers of online casinos also have to consider this, because participation in illegal gaming offers is also punishable by law.
But the biggest problem remains, argues not least the Bremen Senator for the Interior, Ulrich Mäurer: the risk of addiction. To recent numbers According to the Federal Center for Health Education, 430,000 people in Germany have at least problematic gambling behavior, almost half are considered addicts, and sports betting and online casinos are now playing an increasingly important role. It’s a number to watch closely in the future.