Germany: Schleswig-Holstein passes egaming treaty

Schleswig-Holstein is the northernmost of the sixteen states of Germany. It is the first time that sportsbetting has been regulated in the EU member state.

The key components of the treaty, which has previously been approved by the EU Commission, include: The law coming into force on 1 January 2012 with licences valid from 1 March; an unlimited number of licences; poker, all casino games except roulette, black jack and baccarat, exchange and sportsbook allowed and 20% gross profits tax on all products. This is the first time online sports betting will be licensed in Germany.

In a statement Betfair said: “Schleswig Holstein’s new online gambling treaty is a welcome piece of legislation geared towards creating a genuinely open, transparent and responsible online gambling market in Germany. We are pleased that it has today passed through the State Parliament and we look forward to applying for a licence to operate there.

“We are now hopeful that the other 15 German States will make the required amendments to their proposed State Treaty, in order to bring it into line with EU law and with the law passed in S-H today. Betfair is committed to participating in the online gambling market in Germany, ready and willing to pay taxes there and offer German consumers competitive, innovative and safe products."

Meanwhile a spokesman for bwin.party, whose share price has risen by 14% at the time of writing, confirmed to eGaming Review that the company "Will apply for licensing in Schleswig-Holstein when the implementing provisions are in place."

He said: "Today’s vote is an important and groundbreaking step on the way to a more open and regulated gambling market in Germany. We call upon the other federal states to follow this regulatory model, notification of which has been approved by the European union."

And the spokesman added that "The legislation is in line with the market and is well-placed to contain the black market by channelling betting stakes to providers that are licensed in Germany."