Germany Gambling License

Germany is one of the biggest countries in Europe, comprised of 16 individual states, with a very complicated legal system. Unfortunately, this has led to the fact that gambling laws and regulations in Germany are quite complicated as well.

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Germany is by far the most developed country in Europe. As such it possesses some of the most encompassing and comprehensive legislature. However, that is definitely not the case when it comes to their laws on gambling. This is because there are still a lot of grey areas which are not covered neither by the German State Treaty on Gambling nor by any of its amendments.

While there is a general sense of being in a state of limbo when online gambling is concerned, there is one thing which is for certain, online gambling is 100% legal in the German state of Schleswig-Holstein. The German state has issued more than 20 online casinos licenses so far and has also been allowed to extend those licenses until June 30, 2021. It is to be expected that this trend will also mean that online casinos will become completely legal in all German states sooner rather than later.

State Treaty on Gambling

The German State Treaty on Gambling is the highest law concerning gambling activities on German soil. There have been three amendments to it so far and the most recent one extended what was known as the experimental phase which allowed betting companies to operate in Germany in congruence with the state betting and gambling operator.

This shows a tendency towards allowing more private betting companies to enter Germany’s gambling scene legally. All sports betting licenses for private companies for example were made to be valid not only until the previous deadline of June 30, 2019, but after it as well, until June 30, 2021.

The main purpose of this amendment was to grant new online and offline betting and gambling licenses, predominantly to sports betting operators. The expiration date of June 30, 2021 can even be extended to June 30, 2024. In addition to this, the number of sports betting licenses issued by the state can now be higher than the previous limit of 20.

However, one of the biggest drawbacks of the third amendment is the fact that it deals mostly with sports betting licenses and doesn’t mention, at least not clearly, the possibility of applying the same rules to online casinos.

Online Casinos are Legal in Schleswig-Holstein

Schleswig-Holstein is the only German state which is given legal license to offer online gambling. The northernmost of the 16 states of Germany with the capital Kiel is famous for the beauty of its islands and for being the hub for Germany’s rich and famous.

It has also been the only state in Germany which has been allowed to grant licenses to aspiring online casino establishments. However, before the third amendment of the State Treaty on Gambling came into force, Schleswig-Holstein’s online casino licenses were set to expire by February 2019.

The view of the German state legislature was that online casinos should come under stricter regulations, but Schleswig-Holstein threatened to leave the State Treaty all together if no agreement of the online casino licenses was found. As a sort of compromise the German Minister Presidents agreed to allow Schleswig-Holstein to extend the expiring online casino licenses under its jurisdiction. Schleswig-Holstein’s parliament promptly did this and is now officially the only German state allowed to permit companies to operate online casino games on its territory.

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Future Online Gambling Outlook

One of the key things which can be taken from the newest amendment on the State Treaty is the fact that the German legislator missed a golden opportunity to legalize all online casino services on German soil. However, the fact that big strides were made to legalize private sports betting nationwide means that the same will soon happen for online casinos too.

There is a clear tendency to harmonize nationwide German online casino legislature with that of Schleswig-Holstein and this will happen in one form or another very soon. This will probably happen during the next amendment of the State Treaty which is bound to take place in 2021. It can be expected that with this, fourth amendment, other German states will also be able to issue online casino licenses just like Schleswig-Holstein does.

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