Added on March 19, 2020 Category News

Does the new State Treaty on Gambling slow down betting fun?

A new state treaty for sports betting in 2021? The constantly changing legal situation has been frustrating for the tipper for over ten years now.

In 2011, all 16 federal states agreed on the so-called GlüStV. The main consequence for the user was the introduction of a five percent tax on sports betting.

Officially, the market opened up to private providers, since only state providers were allowed since the first gaming contract in 2008, but this restriction had been reversed by the EU. In reality, however, the main sales of sports predictions have already been made by private providers.

A new gaming contract is due to come into force in 2021 and a temporary solution will apply beforehand.

What changes will the new State Treaty on Gaming in 2021 entail?

The amendments to the new law should be far-reaching. If all current plans were implemented, it would no longer be possible in Germany to legally regularly make profits in higher spheres with sports betting. The reason is perhaps the most controversial adjustment: a limitation of the monthly deposits to 1,000 euros. Originally, only sales up to this amount were considered.

This regulation is basically not an innovation, but already existed on paper with the sales limit in the State Treaty on Gambling for 2012. However, the quick veto of the European Court of Justice meant that compliance was never checked.

Other changes that are clearly in the room for the customer are the prohibition of the bet type “Over / Under” (at least for live bets) and probably even more special bet types (‘When will the Xth goal?’ Etc.). In addition, it should no longer be possible to log in to two betting accounts at the same time.

Important changes to the 2021 State Treaty on Gambling

❗️ Maximum deposits of € 1,000 monthly
❗️ Bets on the number of goals (over / under) may be abolished
❗️ Relaxation of the former restriction to 20 sports betting licenses for private providers
❗️ Simultaneous login to several bookmakers should be prevented
❗️ Detailed monitoring of all bets by a customer and disclosure of the data
❗️ Limitation of live betting

What do market leaders think about the new state treaty on gaming?

The leading bookmakers in the industry have different ideas about the new state treaty on sports betting. The betting limit is undoubtedly a thorn in the eye of bookmakers.

Just a few days ago, MrGreen, a second-tier supplier withdrew from the German market. It is at least reasonable to assume that the planned new state treaty on gaming played a key role in the exit of the young provider of sports betting, which had previously been quite offensive. In addition, Redbet and 10bet recently said goodbye to the German market.

Failure to comply with the established rules could result in painful fines of up to EUR 500,000 in 2021. On paper, it has become easier for smaller providers to conquer the sports betting market since the rule has been changed that a maximum of 20 licenses are issued.

In principle, every betting provider can apply for a sports betting license that is subject to clear conditions. In reality, however, the requirements will rather result in a reduction in private and at the same time legal betting providers.

Can I still make sensible bets when the new State Treaty on Gambling 2021 comes into force?

If all of the planned adjustments after the transition phase are actually implemented in the next 1.5 years, this would mean enormous cuts for sports prediction.

If you see the small combination bet for more fun during the Bundesliga live conference as a weekly ration at the weekend, you won’t have any problems. However, more professional betting ambitions would sometimes suffocate with the deposit limit.

“We don’t want a glass player. The countries must find solutions together that protect the player ” – Hesse’s interior minister Peter Beuth

Hope gives the ambitious tipster that the previous contracts have never lasted. The State Treaty on Gambling in Germany of 2012 was rejected by the European Court of Justice because there was no freedom of competition with the maximum of 20 licenses. A draft drawn up in 2017 was never ratified because courts made it clear early that this contract could have been successfully challenged.

In addition, individual bookmakers have managed to find loopholes in existing contracts in the past.

The most important questions & answers about the new gambling law

1.) Can I only bet € 1,000 per month from or since January 1, 2020?

Answer: No, for the time being no bookmaker has added this rule to the terms and conditions. However, it cannot be guaranteed with certainty that this will not change in the next two to three months once the big names in the industry have applied for their sports betting license.

2.) Does the € 1,000 deposit rule apply per bookmaker or in total?

Answer: The original idea was to spend € 1,000 a month per bookmaker. According to current planning, if the new contract is ratified for 2021, the maximum deposit amount will be € 1,000. There is no restriction on sales. Basically, an increase in this amount is conceivable for players who can show that they have high financial reserves.

3.) Has the State Treaty on Gaming in Germany for 2021 already been fully formulated?

Answer: No, the explanations change regularly.

4.) How likely is it that the 2021 contract will be adopted?

Answer: Since the topic of ‘gambling’ is a national matter, all 16 federal states have to agree to the new contract. This has not always been realized in the past (keyword: Schleswig-Holstein).

5.) Will a new State Treaty on gaming have to tremble again before the European Court of Justice?

Answer: This is not guaranteed. So far, there has been no contract that has stood up to EU law. However, with the elimination of the restriction to 20 licenses, the most important criticism to date has been eliminated.

6.) How should the deposit limit be monitored?

Answer: The federal state of Hesse received the order to set up a blocking system to protect the players. It has the name OASIS = online query player status.