German state pledges to create own sports betting regulation

The newly-elected government of the German state Schleswig-Holstein has said it will not implement the country’s latest State Treaty on gambling and will instead implement its own regulatory framework.

The Jamaica coalition – so named because of the colours of the parties involved – said three other states – North Rhine-Westphalia, Rhineland-Palatinate and Hesse – would also adopt its new framework.

The system is expected to mimic the regulations Schleswig-Holstein had in place until 2013, which legalised, taxed and regulated online sports betting.

Christoph Engelmann, a lawyer with DLA Piper, said the announcement simply added to the confusion over German sports betting regulation.

“We have to see if Schleswig-Holstein and the other states will really implement the signed Treaty or if they build their own (new) framework. At the moment it is not clear what will happen.”

The prime ministers of the 16 German states signed the new State Treaty on gambling in March, with the new regime due to enter into force on 1 January 2018.

However that framework, which removes the cap on sportsbook licences and gives authorities more power to clampdown on unlicensed operators, has been deemed anti-competitive by the European Commission, and will likely be challenged in court by operators.