Schleswig-Holstein Grants Germany’s First Private Online Casino Licenses
Germany has taken a pivotal step in regulating its online gambling industry as Schleswig-Holstein became the first state to authorize private companies to operate online casinos. On September 18, 2024, the region issued licenses to four operators: BluBet Operations Limited, Cashpoint (Malta) Limited, Skill On Net Limited, and Tipico Karlsruhe Limited. This move marks the first time private entities have been permitted to offer online casino services in the country, setting a new standard for legal gambling operations in Germany.
A New Path for Online Gambling in Germany
Unlike other states, which allow limited gambling activities like online slots and poker under the federal regulator Gemeinsamen Glücksspielbehörde der Länder (GGL), Schleswig-Holstein has taken a different approach by offering licenses for live casino and table games. This development represents a significant shift in how the country regulates online gambling, allowing private companies to operate legally and compete with the country’s existing illegal gambling market.
Interior Minister Sabine Sütterlin-Waack highlighted the importance of this change, explaining the state’s goal of directing players away from unregulated platforms. “By allowing an attractive online offer, we want to prevent players from taking advantage of illegal offers if they want to play the games they know from casinos online, for example, and thus strengthen legal gambling,” she stated. The licensing initiative also places emphasis on player protection, with strict regulations in place to prevent gambling addiction and ensure safe gaming experiences.
The decision aligns with the State Treaty on Gambling (GlüNeuRStv), which came into effect in 2021, giving each of Germany’s states the autonomy to issue licenses for casino table games while online slots and poker remain under federal oversight. This dual regulatory system allows individual states to address their specific needs while maintaining an overarching structure for more uniform gambling regulations across Germany.
Industry Response to the Licensing Breakthrough
The decision to allow private companies to enter the regulated online casino market has been well-received by key figures in the industry. Tipico’s iGaming director, Christian Heins, celebrated the achievement, especially noting its significance for him personally, as the license was granted in his “home state” of Schleswig-Holstein. Heins expressed eagerness to collaborate with providers of casino table games to broaden the offerings available under the new licensing model.
The move also garnered praise from Austria, where the Österreichische Vereinigung für Wetten und Glücksspiel (OVWG) acknowledged the new framework as a model for safety and player protection. The organization expressed hope that this development could encourage other German states to adopt similar regulations, expanding the market for licensed online casino games.
Tackling Germany’s Illegal Gambling Market
Schleswig-Holstein’s introduction of private online casino licenses is seen as a crucial measure in addressing Germany’s illegal gambling problem. Due to delays in regulations and advertising restrictions on licensed operators, unregulated gambling sites have thrived in the country. Official estimates from the GGL suggest that black market operations contributed around 4% of Germany’s gross gaming revenue (GGR) in 2023. However, industry experts argue that the true impact is far more severe, with some estimating that illegal sites account for up to 20% of the country’s online GGR.
By providing players with secure, licensed alternatives, Schleswig-Holstein’s licensing initiative aims to shift player activity away from unauthorized gambling platforms. The hope is that these regulated offerings will create a safer gambling environment and help diminish the appeal of illegal sites, which continue to pose significant challenges for the country’s regulatory bodies.
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Article Title: Schleswig-Holstein Grants Germany’s First Private Online Casino Licenses
Source:
Germany’s First Private Online Casino Licenses Awarded in Schleswig-Holstein, LCB.org, September 24, 2024.