First German Online Gambling Licenses Awarded

Until the beginning of January 2012, the 16 States in Germany had all stood by the banning of online gambling operators having a place in the German market. This unified stance allowed for the German government to maintain its monopoly on lottery and sports betting but now things are changing. The state of Schleswig Holstein has created its own legislation which was welcomed and approved by the European Commission.

Just last week, Schleswig Holstein issued its first three online gambling licenses to operate in this German state. This is significant for several reasons. Players in Schleswig Holstein will now be able to gamble online in a safe and secure environment and operators are being watched, regulated, held accountable and taxed. Betfair, JAXX and NordwestLotto are proud to have been selected as the first operators to enter the German marketplace. The licenses granted are for six year terms.

The three companies reported that the German state had conducted intensive examinations but that the work which the companies had to complete in order to meet the new regulation standards of Schleswig Holstein was worth it. The operators have agreed to pay 20% of their gross gaming revenue from Germany to the state in tax.

Although the licenses which were granted were only for sports betting, poker and casino licenses are expected within the coming year and could be available within just a few months. Schleswig Holstein has reportedly received more applications for 14 online gambling licenses and 23 additional sports betting licenses.