Gambling can be fun and at the same time, can be construed as a means of earning some quick bucks virtually in no time. With the topic of German gambling laws explained, we wish to clear the confusion that is continuously spilling around in the markets all over the world. The situation has been aggravated with the recent collapse of the German State Treaty on Gambling and Hesse launching its own set of gambling rules governing sports betting.
Hence, German gambling laws explained would by default refer to the status of the laws there. The leaflet explanation says that pending the outcome of the litigations filed in the German courts, concessions to the private sports betting providers cannot be granted. However, all these private sports betting providers can apply for a Hesse toleration for online gambling in the state of Hesse. The status quo applies to even private sports betting providers offline.
Key areas of the Hesse permits:
Hesse is now offering the permits in sync with the provisions of the Interstate Treaty and thus, Hesse permits will hold good until the final verdict of the German court. Salient features of a Hesse permit are the following.
- Hesse has asked for submission of fresh applications from the private sports betting providers. Application in the prescribed format began on September 15, 2016. The process of application and its submission for further consideration will end on November 15, 2016.
- The permit issued by Hesse will be a provisional one and, therefore, will not have any bearing in favor of a private sports betting provider when the new legislation comes into force. In other words, in the event of new legislation promulgated by the competent authority here, all private sports betting providers will be treated afresh and based on their merit/compliance in accordance with the new legislation will make them eligible or disqualified for a license.
- All applicants are required to provide a bank guarantee of 367,900 Euros that will be treated as the security deposit and it should be provided by a European Union (EU) credit institution.
- Private sports betting providers having 20 licenses will have to submit less evidence of suitability.
- All other requisite documents establishing good governance and tax compliance must be provided along with the application.
- All the applicants for private sports betting services must adhere to the additional provisions governing the important aspects of business such as staffing, drug taking, age-proofing, and problem gambling. These are over and above the provisions of the State Treaty that is currently sub judice.
- Hesse permits will be enforceable only for sports in the state of Hesse and thus, will have no bearing on the other German states.
- A private sports betting provider can apply for more than one permit.
German states better known as Lander have considerable legislative independence and thus, do not conform to the practices of other states. However, German gambling laws have been made illegal in the recent EU Court of Justice rulings.