William Hill PLC Pull Out of German Sportsbook Market

In the wake of Germany passing a new Interstate Gambling Treaty, William Hill PLC has chosen to withdraw from the German sportsbook market. However, the operator will continue to provide German citizens with casino and poker products as they are still in a grey area. William Hill’s exit has left bwin.party as the only major operator willing to comply with the new treaty.

Germany is made up of 15 individual states. Now, 14 of those states have united and agreed to the terms of the new Interstate Gambling Treaty which was put into action July 1st. This new 4-year piece of legislation will force operators to pay a 5% turnover tax on all sports bets. This treaty does not comply with European Union (EU) laws nor did it receive EU approval. The European Commission (EC) has publicly stated that “it would pursue legal action against states in breach of its laws.”

The German state that did not sign the treaty, Schleswig-Holstein, has been seen as rogue since it went out on its own and established liberal state-wide internet gambling laws. However, after the laws were passed, the state elected a new government which would like to see Schleswig-Holstein align with the other German states and sign the new treaty.

It is important to note that William Hill is focusing much of its attention on the US market and passing the strict rules set forth by the Nevada regulators. William Hill was previously questioned about its operations in Australia which were at the time in breach of Australian law. Since the questioning William Hill pulled out of the Australian market and closed all Australian operations. Pulling out of the German market may be another step towards William Hill operating in only legalized countries so as not to risk losing the US market.