πŸ’ ISTG New regulation on online gambling in Germany will enter into force July

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Online gambling is illegal in Germany, and hundreds of slot machine halls have shut Hundreds of gaming halls have been forced to close.


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Popular forms of gaming here include sports betting, casinos, lotteries, and of course, slot machines. It might seem odd then, that the laws – particularly in.


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Online gambling is illegal in Germany, and hundreds of slot machine halls have shut Hundreds of gaming halls have been forced to close.


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According to the new law, virtual slot machine games are simulations of terrestrial slot machine games offered on the internet. The possibility for.


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This effectively transplants the current regulations for gaming machines in arcades and pubs online, our source explained. Online casino.


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This was adopted by 15 of the 16 German states in , and by Schleswig-Holstein in see below, Schleswig-Holstein. The role of this committee has been called into question and its lack of constitutionality has been confirmed by multiple German courts. A "game of chance" contains three elements which all have to be present section 3 1 , Interstate Treaty :. Valuable consideration. Bookmaker or totalisator licences for offering bets on horse racing. Casino games No particular casino games are specifically identified in the current Treaty, and although each state has passed Casino Acts, they do not generally list or define permissible games see Question 1, Main legislation : Sectoral legislation. Alongside the general provisions in section 3, the Treaty includes specific provisions on horse race betting in section Finally, the federal Race Betting and Lottery Act applies. Slot machine gambling is regulated to a large extent by federal law. Further, all state Casino Ordinances will, to some extent, set out which casino games are permissible for licensing purposes. Since gambling regulation in Germany is principally a matter of state law, most licensing, supervisory and enforcement powers are executed and take effect at state level see Question 1. Criminal law Organising, promoting or participating in unauthorised games of chance constitutes a criminal offence under sections and of the German Criminal Code Strafgesetzbuch StGB. These licences are granted under the Race Betting Lottery Act. Slot and other machine gaming Slot machine gambling is regulated to a large extent by federal law. In restaurants and bars there is a maximum limit of three slot machines. General definition The Interstate Treaty subjects any activity falling under the definition of a "game of chance" to German gambling regulations. It is also unclear how the Third Amendment Treaty will impact on the restrictions, considering that it will introduce an open licensing system for sports betting as opposed to there being a licence cap of 20 sports betting licences. These limitations vary between the different states and have been criticised as being arbitrary, since they are not based on state population figures, levels of demand for licences or other evidence. State prosecuting authorities As unauthorised gambling is a criminal offence in Germany, the prosecuting authorities of each state also class as bodies with enforcement powers in gambling matters. The minimum legally permitted distances between amusement arcades vary depending on various factors and range from a possible 50 metres Lower Saxony to metres Bavaria. Regional Council of Darmstadt Hesse , responsible for issuing sports betting licences. Local authorities and state-based regulators The licensing, supervision and enforcement of slot machine gambling is usually the responsibility of the local authority for the area in which the premises are located, as is the licensing, supervision and enforcement of betting shops once licences have been granted. It is only regulated by federal legislation to a limited extent. Determination of winnings is entirely or predominantly a matter of chance. Main legislation Interstate Treaty on Gambling The main legal framework governing both terrestrial and online gambling is the Interstate Treaty on Gambling , which sets out the main objectives and core elements of German gambling regulation. Regulatory authorities. The maximum number of slot machines allowed in amusement arcades is 12, with only one machine permitted for every 12 square metres. The Race Betting and Lottery Act also contains provisions on the taxation of lotteries and betting. Horse race betting Under section 3 1 5, horse race bets are defined as bets placed on public horse races and other public performance testing of horses. The general idea is that o nce sports betting operating licences are issued, operators or their respective land-based retail partners depending on the applicable state law must generally obtain a betting shop licence authorising bets made on the premises. The gaming global guide serves as a starting point for understanding the regulatory framework of land-based and online gaming. What are the regulatory or governmental bodies that are responsible for supervising gambling? The Gaming Ordinance provides further details on the slot machines that require licensing. All German states limit the number of available licences to some extent in their respective Casino Acts and some states exclude private operators from obtaining licences at all. Consumer protection including the prevention of problem gambling and the protection of minors. What is the licensing regime if any for land-based gambling? There is no comprehensive list of permissible and non-permissible games or products. The same applies to advertising for unauthorised games of chance. The amount of available licences is not limited by law, but amusement arcade licences are subject to such strict conditions that the number of licences issued is effectively restricted. They are required to do so by Interstate Treaty section 10a 5 to fulfil the objectives set out in section 1. Related Content. Typically, casino licences will cover table games roulette, card games and slot machine gambling. Licences for land - based sports betting in betting shops. The Schleswig-Holstein Ministry of the Interior is the responsible supervisory authority in relation to licences and transitional arrangements issued under the Schleswig-Holstein Gaming Act. What gambling products have been specifically identified by legislation, and what different requirements have been established for each? This means "public" in the sense that the game of chance has to be made available for a larger, non-predetermined number of persons. Betting Bets for money on events or the outcome of events which lie in the future constitute games of chance as defined in the Interstate Treaty see Question 2, General definition. There is no legal limit on numbers but the licences are difficult to obtain by private operators and their economic value is limited.{/INSERTKEYS}{/PARAGRAPH} As well as defining the specific types of gambling which are covered under the legislation, the Treaty maintains a state monopoly on the operation of lotteries, stipulates a total ban on online casino operations and limits the availability of sports betting licences. What is the legal definition of gambling in your jurisdiction and what falls within this definition? In addition to the principal Treaty and the respective state laws, the Casino Acts Spielbankgesetz and corresponding Casino Ordinances Spielbankordnung enacted by individual German states are applicable to gambling. Schleswig-Holstein In January , Schleswig-Holstein introduced its own Gambling Act under which 23 online casino licences and 25 sports betting licences were issued. State Ministries or Senates of the Interior In each state, most of the core responsibilities for gambling-related matters are assigned to the Ministries or Senates of the Interior, although these bodies may appoint lower authorities to act on their behalf. Only one amusement arcade can be operated in any one building. Legislative framework of gambling regulation Overview. These will usually include traditional table games, slot machine gambling and games of chance which have been approved by the licensing authority. Due to a change in government, which directed Schleswig-Holstein to join the Interstate Treaty, the Gambling Act was repealed in February The repealed Gambling Act of Schleswig-Holstein continued to apply in relation to these licensees until the licences expired. There are also some state-based bodies which are assigned wider responsibilities for gambling-related matters nationwide and, as part of this role, act as in the capacity of central regulator on behalf of all German states in relation to these issues. Further, minimum distance requirements may need to be complied with, depending on the state law in question. Finally, decisions of the Federal Ministry of Finance may also impact on gambling operators. In an attempt to maintain a regulated market, Schleswig-Holstein introduced the possibility of obtaining a transitional arrangement for sports betting in Schleswig-Holstein, and introduced a law by which formerly granted Schleswig-Holstein online casino licences were revalidated. Those responsibilities include the licensing and supervision of land-based casinos and co-ordinating enforcement actions against suspected unlawful gambling operators. The key elements which constitute a lottery therefore are:. Although there is technically no legal limit on numbers, totalisator licences that is, licences allowing for pari-mutuel betting can only be issued to horse racing or horse breeding associations and only for certain race tracks. One exception is section 9 1 , No. The states agreed on an amendment to the Interstate Treaty Third Amendment Treaty , which is supposed to enter into force on 1 January if it can be ratified by the end of December Sectoral gambling legislation. Poker Poker, although not specifically mentioned in the Interstate Treaty and not defined by legislation, can be identified as a typical, licensable casino game in most state Casino Acts and Casino Ordinances. Terminal-based gaming Whenever monetary prizes can be won at a terminal-based gaming machine and the likelihood of winnings depends on chance rather than skill, the gambling provisions will apply. Licences for the operation of small or charitable lotteries. However, since bingo at least in its classic form resembles a lottery, the regulations on lotteries will apply. Bingo Bingo is not explicitly identified by legislation. They include the:. Authorities of the Hamburg and Rhineland-Palatinate, responsible for specific types of lotteries, that is, the so-called class lotteries Hamburg and other, cross-state lotteries Rhineland-Palatinate. In general, regulations apply to amusement arcades and restaurants including bars, food restaurants and accommodation establishments offering amusement with prizes AWP , or slot machines with a random number generator where monetary prizes or prizes of monetary value can be won. The Act also contains provisions on the taxation of lotteries and betting. Lottery The Interstate Treaty defines a lottery as a particular type of game of chance where "a majority of persons are given the chance to obtain monetary winnings in return for a certain payment according to a specific plan" section 3 1 in conjunction with section 3 3. Some products have, however, been explicitly identified by legislation as falling under the German gambling regulation. Gambling products. Casino games. Gambling Committee of the Interstate Treaty The Interstate Treaty also provides for a Gambling Committee consisting of representatives from all German states and which was, among other things, involved in the decision-making process during the sports betting licensing process and the drafting of the Advertising Guidelines. Land-based gambling There is no specific definition of land-based gambling. For historical reasons, horse race betting at race tracks is also regulated under federal law, by the Race Betting and Lottery Act of last amended 31 August Rennwett- und Lotteriegesetz. The Treaty, however, explicitly only provides for the regulation of sports and horse race betting. {PARAGRAPH}{INSERTKEYS}Gaming in Germany: overview. It therefore seems likely that similar litigation as has occurred in the past years in the gaming hall sector will occur in the land-based sports betting sector. Licences for land-based slot machine gambling outside casinos for example, in amusement arcades, restaurants or bars. Online gambling The Treaty does not include a specific definition of online gambling. The law was passed in the Schleswig-Holstein parliament in May Definitions of gambling. The Interstate Treaty is implemented into state law by the Transposition Acts and the gambling laws of the individual states. The consideration is given in exchange for a chance to win. This includes games offered through mobile devices. These are regulated by sections 12 to 18 of the Interstate Treaty. What legislation applies to gambling? Sports betting Sports bets are defined as "fixed odds bets on the outcome of a sports event or a part of a sports event" section 3 4 , Interstate Treaty and classed as games of chance if offered for money, since betting will take place on future events. Available licences Licences for the operation of land-based casinos.