Germany’s online casino market is a complex entity, shaped by multiple laws, regulations, and government policies. To provide an overview of this intricate system, it is essential to break down its various components.
Definition and Scope
In the context of German law, online casinos refer to online platforms that offer real-money games of chance, such as slots, poker, blackjack, roulette, and others. These websites are usually operated by external companies based in other jurisdictions, but licensed or permitted to operate within Germany’s regulatory framework.
To date, there is no federal 1go law regulating online casinos specifically. Instead, various state governments have enacted their own laws, which often contradict one another, leading to confusion among operators, players, and regulators alike. As a result, the majority of international online casinos refrain from offering services in Germany due to uncertainty and potential risks.
Legal Framework
Germany’s legal framework for online gambling is primarily governed by federal law (Bundesrecht). Key regulations include:
- Gesetz zur Regulierung des Glücksspielwesens ("Law on the Regulation of Gaming"): This 2008 legislation allows states to license and regulate private providers, but also permits state-owned monopolies.
- Gewerbeordnung (GewO) : The GewO regulates commercial activities, including gambling services.
- Umsatzsteuer und Abgabenordnung (StAbgO) : This law deals with taxation and levies on turnover.
State laws are essential in regulating online casinos within Germany’s federal system. Each state has its own jurisdiction over online gaming providers:
- Baden-Württemberg : The "Gesetz über den Spielbetrieb" (Law on Gaming Business) allows for private sector participation.
- Bayern ("Bavaria"): Its "Verfassung von Bayern" explicitly prohibits games of chance, including online casinos.
- Berlin : There is no state law regulating online gambling in Berlin.
Types and Variations
While online casino regulations vary across Germany’s federal states, some common types or variations exist:
- Online Lotteries (Onlinespielereien) : Online lotteries are offered by several providers but subject to strict regulations.
- Sports Betting : Most European countries offer sports betting services with an exemption for football and tennis.
Regulation
Regulation of online casinos in Germany is primarily carried out at the state level:
- Licensing requirements
- Eligibility: Companies operating in other jurisdictions that meet specific criteria
- Application process: Submissions are assessed, reviewed, and possibly scrutinized further through evaluation committees.
- Supervision and enforcement:
- Regular reporting obligations on financial transactions and advertising activities.
- Random checks on compliance.
Misconceptions
Online casino misconceptions:
- Myth: "German law is outdated"
- Fact: Multiple laws, regulations, and policies cover different aspects of online gaming but can create complexities for all parties involved.