Regulation

Germany raises online slot stake limits, operators to track player behaviours following change

iGaming Business15 Jul

Heeding the calls of the industry, Germany’s gambling authority has agreed to lift the highly debated €1 staking limit for online slot games.

Starting this July, licensed operators of online slots can increase their stakes above the long-standing €1-per-spin limit . While the €1 cap remains the legal default, operators approved by the Joint Gambling Authority of the Federal States (GGL)  can now opt to raise their stakes to either €3 or €5 per spin.

These higher limits can only be implemented for qualifying players, however. To be eligible for stakes of up to €3, players must be at least 21 years old. To access the €5 limit, meanwhile, they must have shown no signs of “problematic” gambling in the past 90 days.

Operators are required to carry out special monitoring to track player behaviour both before and after the increase. If indicators of harmful gambling emerge, operators must intervene with appropriate measures. These could include contacting the player, restricting their gambling activity or suspending their account.

The GGL says the changes are intended to reflect changing market conditions while supporting the objectives of Germany’s State Treaty on Gambling (GlüStV). In particular, the authority points to the treaty’s aims of “maintaining a high level of player protection within a regulated gambling market” and of preventing addiction.

But operators say the increase in stakes is a tacit acknowledgement that Germany’s online casino regulation has failed to channel players into the legal market.

‘Positive signal ‘

Following years of industry campaigns, online operators in Germany have responded with enthusiasm to the change, with Entain describing the change as a “positive signal” for Germany’s licensed market.

“The federal states are demonstrating their willingness to regularly review the practical impact of existing regulations and to make adjustments where necessary to achieve the objectives of the Interstate Treaty on Gambling,” says Simon Priglinger-Simader, senior regulatory affairs manager DACH at Entain Group and vice president of the German Online Casino Association (DOCV).

“We hope that this decision will encourage more players to return to the regulated market.”

Under the Interstate Treaty, the GGL has the power to raise staking limits in response to changes in the market. However, the decision needed to be approved by representatives of the 16 federal states who sit on the authority’s administrative board.

In Priglinger-Simader’s view, the move reflects a growing realisation that the regulated industry is struggling to compete with the black market.

“It’s clear that the states wouldn’t have made this change if they hadn’t seen the issue with channelisation and with the limited products we have been offering,” he tells iGB.

Review of the Interstate Treaty

The decision lands ahead of the hotly anticipated  review of the Interstate Treaty , which is set to be finalised by the end of the year.

Carried out by representatives from Germany’s 16 federal states, it will be the first time the legislation has come under the microscope since entering into force in 2021. The aim is to assess whether the treaty has met key objectives such as channelling players into the legal market and preventing problem gambling.

For the industry, the answer to these questions is clear. For several years, the legal market has been arguing that over-restrictive regulations, high taxes and slow approval processes have left them unable to compete with the black market.

The result, according to the DOCV, is an online channelisation rate  “in the mid-double-digits” . This is ultimately bad for player protection, they argue.

Although major structural changes aren’t expected in the review, there are signs that some ideas are cutting through. Most significantly, lawmakers appear to be taking the task of creating an attractive legal market more seriously.

This is the view of the German Sports Betting Association (DSWV

Source: iGaming Business. Summary reproduced for informational purposes.

Related

Never miss a headline

The biggest gaming and sports stories, in your inbox. Unsubscribe any time.