Licensing Procedure for Online Gambling in Germany Set to Start on July 1st

by Olivia Richardson - Friday, June 25th, 2021 1:55

The new German Interstate Treaty on Gambling (ISTG 2021) will come into force on July 1st 2021. This means that from that date private gambling operators can make an application to run online sportsbooks, poker rooms, and video slots.

Any licenses issued under the new regulations will allow the holder to operate throughout Germany with the gambling authority of Saxony-Anhalt becoming the chief regulator for all online gambling operations. The authority has also clarified licensing restrictions on casino games with games such as blackjack and roulette not permitted under the new licenses. License for these types of online casino games may be covered by individual states at a later date but will not be included in the current Interstate Treaty.

ISTG 2021 replaces the previous treaty which ran from 2012 until the 30th June 2021. The most significant change in this new treaty is the lifting of the ban on internet gaming.

Applicants for licenses must provide a security deposit of at least €5M up to a maximum of €50M. The deposit will be determined by the expected average monthly turnover for each individual operator.

License holders will be allowed to offer different forms of gambling under the same domain, but each service must be clearly separated. This means that players must not be able to play two or more different types of games at the same time.

The treaty also stipulates that a cross-supplier deposit limit must be enforced at all times. The limit is set at €1,000 per month for each player. This means that a player can only deposit up to this amount across all operators and platforms. This will be controlled through a central limit control file held and monitored by the regulator.

There are also strict limitations on how a player accesses any online gambling services and products. The treaty states that players cannot at any time play games or access betting products simultaneously.

Alongside the above requirements, the ISTG 2021 also outlines specific requirements for video slots. These include a minimum game time of 5 seconds and a maximum stake of €1 per game. Operators are also warned that stakes and wins cannot be used to build up a jackpot.

With regards to sports betting, both betting on the result of a game and any in-game events will be allowed with live bets permitted with specific guidelines.

Olivia Richardson

Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.