The Head of Legal at Endorphina, a leading Czech-based iGaming development company, recently held a Q&A session in which he answered questions about the new approach to online gambling regulations in Germany. In the interview, Jakub answered several questions related to the new regulations, and what they will mean for players and operators alike!
In response to the first question asking about what is happening in Germany, Jakub explained that new legislation was passed in the country after the required number of states approved a new gambling treaty. He went on to state that the ‘Der Glücksspielneuregulierungstaatsverag’ treaty on gambling will come into effect on July 1 2021. However, when asked if this meant all operators would need a license to operate in Germany past that date, he explained this would not be the case. Germany is still in the early phase of implementing this law and will first have to establish a regulatory body. Jakub claimed that sources believe the regulatory body will be fully operational at the end of 2022.
This led to the obvious question of how Germany will enforce the new law past July 1 2021 without a regulatory body in place. Jakub explained that guidelines are in place and as long as operators stick to them, the German government would leave them alone once the regulatory body is fully operational. In essence, operators and the government would have a gentleman’s agreement.
The Requirements of the New Regulations in Germany
Endorphina, who recently released their latest video slot ‘2021 Hit Slot, is just one of many software development companies that has one eye on the developments in Germany. Jakub touched upon a few concerns, especially when asked about the requirements operators have to follow under the new German online gambling regulations. He explained the maximum bet allowed on slot games will be just €1, spins must take at least 5 seconds, autoplay features are banned, and no jackpots are allowed. Also, reality checks have to kick in after 60 minutes of play, which forces players to take a 5-minute break.
While Jakub admits the law really focuses on player protection, he thinks the restrictions will lead to slots becoming unattractive to players. A slot without jackpots and a €1 max bet is unlikely to appeal and will push players into other markets instead. Jakub then went on to talk about the taxes and how these would affect the games. There is a proposal of a tax of 5.3% of all stakes wagered. He explained that this would lead to a reduction in the RTP of games, as otherwise, operators would lose money. That reduction of RTP will further decrease the attractiveness of games.
Jakub brings up some valid points and while new German regulations, on the whole, is a great idea, it is clear that many of the requirements are a bit too much. Clamping down too hard on slots will just push players into other online gambling verticals.
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