German Online Gambling Proposal Criticized

31 October 2011

The rules for online gambling in Germany are changing and though it seems that Germany is relaxing its grip a little, it is not far enough according to the Remote Gambling Association (RGA) and some of Europe’s largest online gambling operators.

Currently 15 of the 16 German States have a adopted a policy that will follow the French model that taxes all bets at 5%, far lower than the originally planned 16.67%. The total allowed licenses will also increase from the current 7 to twenty.  This seems to come as a direct response from a complaint from the European Commission.

Will this be enough to bring the legal squabbling to a close about Germany’s monopoly run online gambling laws? Not according to Betfair who has stated:

“The detailed opinion of the EU Commission contained several points of contention with the original proposals which have not yet been addressed, and in our opinion the final makeup of the new state treaty in Germany therefore remains uncertain.”

Bwin.Party also issued a statement about the 15 states saying:

“The announcement by the 15 federal prime ministers today is a step forward, but in formulating the final decisions the important thing is find a solution that is in line with market realities and at the same time is compliant with EU law.”

The 16th state, Schleswig-Holstein, has already passed a different set of online gambling regulations and though that would considered by most to be more in line with what the E.U. was looking for. It was hoped that the other 15 states would follow suit but now it seems the other states have invited Schleswig-Holstein to join in on their deal.

Clive Hawkswood, Chief Executive of the Remote Gambling Association said that:

“The European Commission has repeatedly stated that the draft State Treaty falls foul of EU law and the latest version appears to make little headway in meeting the Commission’s concerns. In fact, such an approach simply makes the Schleswig-Holstein proposal more attractive and creates a fragmented, confusing and undesirable situation for German consumers.”

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