Nordrhein-Westfalen becomes latest German state to grant online casino licences

Following the legalisation of online gaming in Germany last year, Nordheim-Westfalen has passed legislation to issue five licenses to operators.

The treaty allowed state governments to choose how they regulated online table games by either creating a monopoly or issuing multiple licences to different operators.

The law itself says that it has come in response to demand from the public in an attempt to divert people away from black operators to regulated channels instead.

The legislation says that the licences will only be granted to those operators that do not endanger public safety or are against the public interest. In addition, the operator must be based in an EU member state and conduct itself within the terms of the State Treaty, which was approved by German lawmakers.

After the bill was read for the second time, it was passed with support from the Christian Democratic Union of Germany (CDU) and the Free Democratic Party (FDP).

The Alternative for Germany (AfD) did propose amendments to the bill, for example, banning companies that offer bonuses and discounts, a blanket advertising ban and a cooling-off period so that those who have offered online gambling before regulation could not receive a licence for two years. However, all of these propositions were rejected.

Part of the bill explains its reasoning, saying: “A permitted range of online casino games is to be created. The population’s demand for such a range of games is to be channelled into a permitted market in order to attract players who would otherwise continue to play with black market providers.

“These providers from abroad would play against the risk of fraud and manipulation as well as against particularly addictive game designs and advertising measures through regulatory requirements. Channelling players into the legal market can also deprive the black market of its financial basis.”

Nordrhein-Westfalen becomes the second state to grant these types of licences, following the lead of Schleswig-Holstein, who allowed for the operation of online casino games in the region last month.