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The German authorities are struggling to develop the necessary laws for regulating the online gaming industry. Finally in April 2021 the International Gambling Treaty was passed that allows for the licensing of online casino licenses.
New tax system
New rules for licenses will also include new taxes for new license holders. The taxes for online gaming and virtual slots are computed primarily from the sum invested minus the virtual slot machine’s taxable basis and the wager. The wagering fee covers the cost of participation in online poker and virtual slot games. For online poker it also includes all participation and bets placed during a particular tournament. This tax covers 5.3 per cent of assessed income. Tax rates on sports gambling have been increased by 5 % in comparison with the existing 5 % assessment. All else remains unchanged.
Account verification
A player’s account must have a proper verification and must also show that the credentials are provided. These are the tasks for provider checking and confirming the information. This helps keep robbery away. To create an account for gaming players, players should contact the organizer for more specifics about their last name, birthdate, birthplace and residence location. The organizers check this information for accuracy. It will establish a database that will be accessible to all provider reports and memberships for a fee.
Advertising
While the new rules have positive effects, they have some limitations. Online gaming platforms advertising isn’t permitted from 12:00 to 17:00 on Mondays. Germany believes these restrictions will help and not affect the young generation. Besides, minors cannot target audience. This means the platform cannot promote its casino while a player plays another game because of a new ad law. Online games are a very lucrative sport and advertising should also avoid being confusing or encouraging gambling.
Licences
With this new regulation, businesses are required across Germany to operate. Its duration is five years. By 2030 private players will be allowed to offer virtual slots, sports betting and online poker, the ISTG said. A casino website must have three criteria: the value of the site’s consideration and the chances of winning. The agency operates in Saxon-Anhalt Germany and will be responsible for regulating gambling activities. This authority is able to give licences.
Specifications regarding the license application
The Gambling Authority in the German Bundesstaat Sachsen-Anhalt has become the competent authority for national licences. This release of specific license conditions for the virtual slot games and online poker sets out the general rules for the new ISTG 2021. Casino games like blackjack or roulette do not have license restrictions. Under these terms and conditions, a few things are covered, including:
Documents to prove the transparency and security of the gambling operation
This document should contain both an information security concept and concepts regarding money laundering, IT security, and payment security. Furthermore, the application documents should also contain an overview of social responsibility for information on the prevention and protection of youths in gambling.
Payment transactions
Non licensed gambling is prohibited from making payments. Upon request, the authorities can order the suspension of the transaction as well as prohibit or stop payments from taking place. Depositing funds via e-wallet, PayPal or a similar service is not permitted.
Is online gambling legal in Germany?
The German state-owned gambling company GLÜSTV has legalised online gambling since July 1, 2020. This regulation will regulate online casino gaming such as gambling, poker games and slots.
David Prior
David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.
