Legislative Requirements of German Internet Casinos
Internet Casino License: Schleswig-Holstein
Master Law: Interstate Treaty on Gambling and laws promulgated by provincial governments
Operator Tax: Over 80% of revenues
Player Winnings Tax: None (bank or electronic intermediary commission only)
Penalties for Operators: Articles 284 and 285 of the German Criminal Code. Penalties range according to the gravity of the offense, the district, and the degree of untaxed profit.
Site Languages: German, English
Payment Gateways: Visa, MasterCard, PayPal, Skrill, Neteller, WebMoney
Regulation and Licensing
German online casinos operate on licenses issued by other countries. Such foreign licensing deals provide Germans with the opportunity to access virtual gambling sites on the strength of foreign deals between EU countries. Among the most widely used sites are Playtech Casinos Germany, which are accessed via such foreign licensing deals.
German legislation prohibits operations of online gambling portals with a national license.
They were released by the government of Schleswig-Holstein and governed by the federal Interstate Treaty on Gambling, Trade Regulation Act, and Gaming Ordinance.
Schleswig-Holstein Licenses
There are 16 federal states of Germany. There was the possibility of amendment of the fundamental law of online gambling with each of their governments. Fifteen accepted the ban on virtual gambling houses, but Schleswig-Holstein opposed the law.
The state governmentaised a petition to the Federal Court requesting that the ban be lifted. The appeal sought changes to the Gambling Act, including the implementation of consolidated legislation to regulate gambling software—opening up all types of gambling and using a single model of licensing. The main reason was the excessive taxations, which amounted to greater state revenue.
48 six-year licenses were issued by Schleswig-Holstein during the court hearing of the petition. The 36 were canceled after the adverse court ruling. The remaining 12 operated for 8 years (6 licenses with 2 renewals), which expired in January. It is now legal to engage in online and land sports betting with fixed odds. Bets are laid on a specified fraction or a specified outcome of a sporting event.
The 12 Legally Operating Sites:
- PokerStars
- 888
- bwin.party
- Bet365
- Bet-at-home
- Tipico
- Skill On Net
- Merkur
- Bwin GVC
- 3 casinos belonging to Gauselmann Group Merkur Gaming
Sports betting licenses were issued for the last time 10 years ago. Subsequently, all the approvals were put on hold until early last year before that, resulting in many court cases. A new licensing criterion was prepared and implemented in January last year before that. Owing to the COVID-19 pandemic, however, no licenses have been granted so far.
Earlier this year, two internet software suppliers and representatives of Schleswig-Holstein again filed a lawsuit with the Federal Administrative Court against the German government for unlawful banning of online casino activities. In October of the same year, the court confirmed the ban on the basis of conformity with national as well as EU law.
The Schleswig-Holstein representatives signed a second petition for reconsideration of the ban on internet casinos. By June 30th, there will be a decision. The 12 licensees will receive new licenses or will be branded illegal.
Player Support, Problem Gambler and Their Families Contacts
In order to be able to resort to protection from the law, a German player must know which license the Internet casino operates under. By resorting to an authority of control with jurisdiction, a player should be able to retrieve their winnings. There is no national support service.
Treatment for gambling addiction in Germany is offered by private and public clinics.
FAQs On Online Casinos In Germany
Are online casino games legal in Germany?
Officially, Germany prohibits online casinos. However, in the EU Free Trade Agreement, there is an exception that allows sites with international licenses to operate legally in the country.
Is there a withdrawal limit for online casinos in Germany?
Each operator sets the withdrawal limit weekly or monthly. The withdrawal limit differs according to the payment method used.
Are winnings in online casinos operating under cross-licenses withdrawable?
German banks restrict online foreign casino withdrawals. However, most websites allow the winnings to be sent to digital wallets like PayPal or Skrill. Money can be withdrawn in any quantity from here, with currency automatically changed. There is a small commission, but the player still receives his winnings.