EC rejects Germany’s new treaty
Germany’s plans to revamp its online gambling market was considered by the European Commission to be a “not viable solution.”
Germany.- The European Commission has dismissed Germany’s plans to overhaul its online gambling market as it’s “not a viable solution.” The new State Treaty on Gambling, agreed upon by the 16 German landër last October, was rejected as a letter from the EC considered this solution anti-competitive.
The new legislation aimed to lift the previous treaty’s cap on the number of sports betting licences. Previously, those who failed to win one would challenge the decition at court, and by that preventing the government from properly issuing any other betting license.
All of the original 35 license applicants who’d proceeded to the second stage of the process would immediately receive temporary betting permits as stated in the new treaty, whilst other applicants would have to apply for full licenses that would become active in 2018.
German gaming regulators were also encouraged by the treaty to study other European Union regulated markets to determine “the current actual development in the field of online casino offers.” The EC also found fault with this plan and called on Germany to make a different, more decisive move to regulate online casinos to resolve the country’s “insufficient” consumer protection tools.
The Landërchefs will vote on the new treaty next Thursday and the EC opinion will factor into the discussion as if they fail to act to the EC’s satisfaction, it will proceed with an infringement procedure against Germany. Federal government collected €307 million in sports betting taxes in 2016, 28 percent more than in 2015. While significant, it seems quite low in comparison to the €1.5 billion the finance ministry collected in lottery taxes last year.
