Operators given more time to apply for German licence
German Land of Hesse extends deadline for local and private operators to apply for 20 sports betting licences on offer under the country's Gambling State Treaty until 12 September.
The German Land of Hesse has extended the deadline for local and private operators to apply for the 20 sports betting licences it has made available under the country’s Gambling State Treaty.
The western state’s minister of interior and sports said it would extend the deadline for phase one of the application process by a further eight days from 4 to 12 September. The reasons for the extension are, as yet, unknown.
So far only mybet (formerly JAXX) and bwin.party have said they will apply for a licence despite also having recently been approved in breakaway state Schleswig Holstein that, unlike the State Treaty, has been formally backed by the European Commission. The country’s northernmost state saw its licensing process open in May only for a new local coalition government to instigate a repeal and seek a return to the controversial nationwide solution that was ratified in July.
On Friday bwin.party co-CEO Jim Ryan said it would apply for a German sports betting licence and pay the resulting 5% turnover tax despite continuing to believe that it “fails to meet the requirements of EU law”.
During its first half results presentation Ryan said the company would apply for a licence under the revised “E15″ Treaty but equally continue to operate “all products” while paying tax on sports betting as required by German federal law.
In July the company said that Germany’s introduction of a turnover tax would knock between 5m to 10m from its full year earnings before interest, tax depreciation and amortisation.
Ryan said that “real concerns” exist over the compliance of the revised E15 Treaty adding that the document’s second draft has “changed little” from what the version rejected by the EC.
Last Tuesday the Interior Ministry of Schleswig Holstein awarded five further sports betting licences despite its newly formed coalition government seeking a return to the nationwide Intrastate Gambling Treaty. Ladbrokes, 888 UK, Admiral Sportwetten (Rellingen), Admiral Sportwetten (Gumpoldskirchen in Austria) and Cashpoint Malta Ltd (Malta) joined Betfair, Bet365, bwin.party, mybet, Die Nordwestlotto, Tipico and betathome bringing the total amount in Germany’s northernmost state to 12. Each licence is valid until August 26 2018.
“While there is much political rhetoric in the new [Schleswig Holstein] administration about wanting to reverse the current gambling law in SH there are many hurdles to doing so,” Ryan said. “Having issued a further five sports betting licences only this week it is expected that poker and casino licences will also be issued soon, complicating the process yet further.”
“How the E15 Treaty, that has not been notified to the EC, will deal with the existing sports betting licences in Schleswig Holstein when the Treaty is limited to issuing only 20 in total remains unclear.
“We intend to apply for a licence under the new treaty but continue to believe that it fails to meet the requirements of EU law and in the meantime will continue to operate all products while paying the 5% turnover tax on sports betting as required by German federal law.
“The only thing that is clear in Germany is that without any further clarity from the EC or European court things are likely to remain unclear for some time,” he added.