Germany

[DE] Bundesländer agree new gambling regulations in Germany

IRIS 2020-4:1/10

Christina Etteldorf

Institute of European Media Law

In January 2020, after lengthy negotiations, the German Bundesländer reached an agreement on a new system of regulation for gambling in Germany, reflected in a draft Staatsvertrag zur Neuregulierung des Glücksspielwesens in Deutschland (Inter-State Agreement on a New System of Regulation for Gambling in Germany – Glücksspielneuregulierungsstaatsvertrag, GlüNeuRStV). The reforms particularly address the admissibility of various types of Internet-based gambling and the related fields of advertising, the protection of minors and the protection of gamblers. 
Under current German law, gambling on the Internet is, in principle, prohibited under Article 4 of the Glücksspielstaatsvertrag (Inter-State Gambling Agreement), although there are exceptions for sports betting, for example, which is permissible. This situation will change under the GlüNeuRStV. The draft states that virtual slot machines, online casinos and online poker are also permissible. This measure is designed to mitigate the high level and further growth of black-market Internet gambling. In order to prevent addiction and protect children and consumers, the draft GlüNeuRStV requires providers to demonstrate their compliance with various regulatory and technical requirements, both when applying for a licence and while they are operating. These requirements include the establishment of technical systems for the early identification of gambling addiction; respect for certain stake limits; and the provision of a panic button that gamblers can press in order to immediately block their activity for a short time. The sharing of information between providers should also stop players who are barred or who have exceeded their limit from simply switching from one provider to another. 
The changes to advertising rules contained in the GlüNeuRStV are particularly relevant for the audiovisual sector. Advertising and sponsorship for authorised gambling services will, in future, be permitted in Germany, and will be able to highlight individual features such as the size of the jackpot or the fact that profits will be used for good causes. However, advertising for gambling services on the Internet and on radio or television will only be allowed between 9 p.m. and 6 a.m. The same will apply to advertising for virtual slot machines, online casinos and online poker. 
Regarding the supervision of online gambling, the draft makes provision for the creation of a public-law institution under whose umbrella the Länder will be able to jointly monitor compliance. The GlüNeuRStV also strengthens administrative procedures by introducing new rules on IP blocking, payment blocking, gaming and purchasing tests, and cooperation between the regulators, for example. 
On 19 February, the Düsseldorf State Chancellery hosted a consultation meeting on the draft, which was addressed by experts from more than 50 associations and institutions. The Minister-Presidents will discuss the draft again on 12 March, the aim being that the agreement enters into force on 1 July 2021.