In Germany, a major debate is shaking up the online gaming sector. The backdrop is an inter-state treaty set up in 2021 to regulate betting and deposits, which is currently under review. Its flaws, from the definition of affordability to IP blocking, are prompting an urgent overhaul.
“I assume GGL will have to kind of put their heads together with the Administrative Board and all of the representatives of the federal states and amend the Interstate Treaty. This is something I’m looking forward to because, obviously, it will be the first proper change of the Interstate Treaty since it was instated in 2021,” says Michelle Hembury, a solicitor at Melchers Law.
An interim evaluation launched in 2023
In December 2023, a one-year evaluation was launched to examine the effectiveness of the treaty that came into force in 2021. This initial assessment shows that the current rules (€1 maximum per spin in online slot machines and €1,000 monthly deposit per player, followed by the LUGAS system) are proving uncompetitive in the face of the black market.
For Simon Priglinger-Simader, Vice-Chairman of the DOCV, things are moving in the right direction: recommendations could be included in the next review, in 2025-2026.
Affordability: a vague concept
The GGL (Gemeinsame Glücksspielbehörde der Länder) is considering transforming the maximum monthly deposit into a more flexible system.
According to Priglinger-Simader:
“The aim is to get a sustainable model that provides a long-term plan and security [for operators]. The latest update we got from the supervisory board meeting in May was that the states are now looking to find the definition for the term affordability.”
Currently, the term “economic capability” is used to authorise derogations, but remains undefined in the decree, directives like the licence, without clear legal precision.
Hembury points out that the lack of definition leads to legal uncertainty for operators. A task force is currently underway to provide clarification towards the end of the year.
“I personally at least hope for a definition on economic capacity, if such will be found that is specific enough, but leaves enough wiggle room for a practical implementation that actually works for the industry and each individual operator. It needs to be practically possible to implement it,” she said.
Slot machine betting in question
The current limit on slot machine bets, €1 per spin, is considered too restrictive. Since May, the LMG has been considering authorising operators to request an increase in this limit from September-October. A collective decision from the authorities is expected before 2026.
The thorny issue of IP blocking
In 2024, an administrative court ruled that the GGL did not have a sufficient legal framework to impose IP blocking on ISPs. The authority now sees the updating of the treaty as a means of legitimising this measure.
Provisional timetable
- Dec. 2023: provisional assessment launched.
- May 2025: the federated states debate affordability.
- Sept-Oct 2025: discussions on increased stakes.
- End 2025: cut-off date for current rules.
- Before 2026: adoption of the revised treaty