On 1 July 2021, the new State Treaty on Gambling came into force. Online gambling, such as virtual slot machines, online casinos, and online poker will be legal in Germany. The German market will be opened up. Providers need a state permit to operate. Operation is subject to state supervision and complex legal restrictions. The permit procedure and operation require that the technology is adapted to the legal requirements.
Why choose our lawyers?
We advise and represent you on all legal issues in this regard. These include:
Checking whether gambling is present.
The term
"gambling" is defined in §3 para. 1 of the State Treaty. A game of
chance is deemed to exist if, within the framework of a game, a fee is charged
for the acquisition of a chance to win, and the decision on the win depends
entirely or predominantly on chance, e.g., lotteries or draws. However, in
practice, it is often difficult to determine whether a game of chance is
involved. This question is significant, e.g., in the case of Pay2Win offers of
online or smartphone games. This is because a prohibited game of chance leads
to many negative legal consequences and possibly criminal prosecution.
Examination of the form of gambling
We delimit
for you which form of gambling you offer, e.g., lotteries, draws, betting,
(virtual) slot machine games, online casino games, online poker.
Assistance in applying for a license
According
to § 4 para. 1 of the new treaty, public games of chance, including those on
the internet, may only be organized or brokered with the permission of the
competent authority of the respective state. This is a prohibition with
reservation of permission - gambling remains prohibited unless the state has
permitted it.
Internet
gambling is subject to particular conditions. Those applying for a permit must
first prove that they will only use the license for their distribution and
brokerage of
- lotteries,
- the
organization, brokerage, and self-distribution of sports betting and horserace
betting, or
- the organization and distribution of online casino games, virtual slot machines, and online poker.
Moreover,
the organization and brokering of public games of chance on the internet are
prohibited. The state legislatures have thus not opened all forms of online
gambling to the German market. Therefore, the offer must fall under one of the
cases mentioned above.
We support
you in obtaining such a permit. Then, together with you, we prepare the application
documents and represent you before the competent authorities.
Advice for payment service providers
Payment
service providers need to know that participating in payments for unauthorized
gambling is also prohibited and can have serious legal consequences (such as
the withdrawal of licenses or other measures by the authorities). Therefore,
payment service providers must ensure that gambling providers on the internet
have the appropriate official authorization. In addition, we advise payment
service providers on whether supervised companies are operating prohibited
gambling.
Advice on the fulfillment of legal requirements
Several
legal requirements apply to the offering of gambling. These include:
- Protection of minors: no access for children to the offer through appropriate
technical measures (identification and authentication, "KYC");
- Credit
ban: No credits for players and no advertising on the site for third-party
credits;
- No rapid
repetition of the game: Technically, the game must be designed so that the game
rounds do not repeat quickly. The background to this is that, in the view of
the federal states, this would otherwise create particular incentives for
addiction;
- Different forms of gambling may only be offered via the same internet domain if an independent and graphically separate area is set up for each form of gambling (exception: sports and horse betting);
- Social concept: The organizers of online games of chance must develop a particular social concept to ensure the protection of minors and players. The social ideas must explain which measures are to be taken to prevent the socially harmful effects of gambling and how these are to be remedied.
We advise you on how to comply with these legal requirements.
Advice on the particular licensing requirements
for sports betting, online poker, and virtual slot machine games
Sports betting, online poker, and virtual slot machine games are subject to special requirements. The complex regulations can only be outlined below. These include, for example, in the licensing procedure:
- Disclosure of ownership and shareholding relationships with the applicant;
- Proof of
reliability and expertise
- Disclosure of where the funds for the operation of the offer come from,
including proof of their legality;
- Declaration and, if applicable, proof that the organizer, appointed persons,
and associated companies have not organized or are not organizing prohibited
gambling in the past;
- Evidence
of financial and technical capacity to operate online gambling following legal
requirements;
- Transparency requirements: Transparent operation must be ensured for the
supervisory authority so that state supervision is guaranteed; this also
includes, for providers not domiciled in Germany, appointing a receiving and
representative agent in Germany;
- Own
accounting for payment transactions from Germany, including an account in the
EU and the establishment of interfaces for the examination of all gaming
transactions in real-time by the supervisory authority;
- Proof of security in the form of an unlimited, directly enforceable bank guarantee of at least 5 million euros or higher if requested by the licensing authority.
We advise
you on how to comply with these requirements.
Compliance with the technical and legal requirements
Online gambling operators must fulfill various technical requirements for their gambling, for example, the connection to the national limit file. We help you to meet these requirements. This also includes legal advisory fields such as data protection, IT, or IP law with our internationally renowned experts.
Advice and representation in administrative
court proceedings
Disputes with authorities can also arise in gambling law. We advise and represent you in such disputes.
- Representation in legal proceedings, including drafting of complaints or
statements of defense
- Representation in summary proceedings and appeal proceedings before
administrative courts
- Representation in appeal and review proceedings
- Preparation of constitutional complaints and applications for review of norms
- Attendance at court hearings
Expert opinions
Our advice is not limited to the above-mentioned main topics. Gambling law is a rapidly changing area of law. We help you to find clarity in complex, confusing matter.
Our lawyers
have been advising on administrative and licensing law for years. Our partner
Dennis Hillemann is a specialist lawyer for administrative law and has
experience in complex administrative proceedings. Our lawyer Christine
Charlotte Fischer advises national and international clients in administrative
proceedings and before the administrative courts.
Key Contacts
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Hamburg, Germany
- +49 (0)40 87 88 698 526
- Email Dennis
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Berlin, Germany
- +49 (0)30 16 639 39 11
- Email Dr Jan
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