German states sign amended State Treaty on gambling
Operators predict future court battles over proposed licensing framework
The leaders of the 16 German states today signed the amended State Treaty on gambling, removing the cap on sportsbook licences and giving authorities more power to clampdown on unlicensed operators.
The amended treaty also calls for a closer examination into whether online casino should be legalised, and would start the sportsbook licensing process in 2018.
“This amendment to the current state treaty restricts the regulation of the sports betting market and creates clarity for suppliers and third parties involved,” said Saxony-Anhalt’s Prime Minister, Reiner Haseloff.
“At the same time, the supervisory authorities can act effectively against unauthorised offers in the sports betting sector.”
The 16 federal states will now have to ratify the new law, but local operators were unconvinced there would be any major changes in the near future, not least because the European Commission has said the amended treaty is still anticompetitive and “not fit for purpose”.
One German operator told EGR Intel: “The process has been running for years now and this version of the treaty has already been challenged by the EU so we don’t see we are going to have to engage with this licensing process in the near term.”
“We expect there will be more litigation around this again.”
The original version of the treaty was halted after being challenged in EU courts by operators who were not awarded one of the 20 sports betting licenses, and similar problems are expected this time around, even though the new treaty calls for 35 licences to be handed out.
DLA Piper lawyer Christoph Engelmann agreed the new rules could be headed for the courts, pointing to a recent German court decision that mentioned that the German situation will stay contrary to EU law if the prime ministers do not change the new law.
Mathias Dahm, president of the German Sports Betting Association, added: “commented: “The minimally invasive revision of the treaty is a small step in the right direction, but it falls short. The restrictive regulations for sports betting operators derive from an outdated monopoly system and have not been capable of creating an attractive and legal range of games.
“If a number of consumers continue to make use of black market products, then neither addiction nor youth and consumer protection can be ensured.”