The Uncertain Future of the New German Online Gaming Treaty

A poll among the readers of a leading eGaming publication has shown that nearly half of them believe that the new online gaming treaty, that was signed by 15 of the 16 German states, will not be workable and that some of the 15 states will go rogue and opt to follow the online gaming regulation that was approved by the one German state that is not a party to the new treaty.

Back in September one German state, Schleswig-Holstein legislated its own online gambling legislation after it has grown tired from the continuous deliberations and lack of consensus among the 16 German states with regards to the type and scope of new online gambling regulations.

The regulation that Schleswig-Holstein approved was welcomed by the Report Gaming Association (RGA) and the European Commission. Following this move the pressure grew on the remaining 15 states to end their deadlock and reach an agreement.

Sadly the remaining 15 states adopted an old proposal that the European Commission ruled to be in violation of European Union trade laws. The RGA also came against this treaty and both organizations did so almost two years ago when it was first proposed.

The new treaty bans all online poker and online casino games and is deemed by most industry leaders to be unworkable. The treaty is yet to be implemented but there are already German-based gaming businesses that are planning to move their operations to Schleswig-Holstein.

One such business is the German Lottery Association that is planning on setting up a new company in Schleswig-Holstein but will operate on a national level. The CEO Faber Lotto stated that “I have made my decision. The process has begun. I have no other choice.”

It is expected that the reaction of gaming business within and outside of Germany will cause at least several of the 15 states the abandon the treaty and opt for regulation along the lines of Schleswig-Holstein.