The gambling industry in Germany

(BPP) Gambling has legal status in Germany. After the income from the casino earnings, the country lies in fourth place among the European countries. And this despite the high taxes, which can even be described as burdensome. Altogether there are more than 60 casinos in Germany. They are visited annually by five and a half million people. In addition, there is an immense number of people who enjoy gambling on the Internet, such as at NetBet Casino online. The gaming staff consists of around 5,000 employees.

The State Treaty on Gaming in Germany defines protection of users, protection against fraud and measures against the illegal market. The law was adopted by 16 federal states in the same year, only Schleswig-Holstein accepted it in 2013.

In January 2012, the state of Schleswig-Holstein proposed its own law and awarded 47 licenses for gaming operations. The difference from the state treaty was that this law also allowed online casinos. Then however the government changed, and the federal-state accepted the interstate gambling contract.

Among the gambling regulatory authorities in Germany are state ministers or senators. They also nominate subordinate bodies which are responsible for the local organisation of the gambling business. The local authorities are responsible for slot machines. They license and check slots and control sports betting.

There are other regulatory authorities, namely the following:

– Hessian Ministry of the Interior and Sport – issues licences for sports betting;
– Landkreis Darmstadt – grants licenses for horse races and stockbrokers;
– The Ministry of the Interior of Lower Saxony – is responsible for blocking payments and issuing licenses for lotteries;
– Düsseldorfer Landesregierung – enables television and online advertising for sports betting and lotteries;
– The authorities of Hamburg and Rhineland-Palatinate – are responsible for some lotteries.
– Tax authorities in Frankfurt am Main – collect sports betting tax;
– Tax authority Neukölln (district Berlin) – the collection of VAT in online casinos;
– The Federal Minister of Finance – can also influence the gambling operators.

The licenses for land-based casinos in Germany are issued by state authorities. The number of licenses is limited by local laws and regulations. In some states, authorizations are granted to private operators, but in others, it is strictly forbidden to operate the gambling business.

Casino licenses are usually valid for 10 years and can be renewed for another 5 years. The costs are calculated based on the assumed gross income of the facility.
Betting agency licenses are issued in the same way. Each federal state limits the number of betting offices, e.g. 400 betting offices may operate and only 200 in Hamburg.

The licences for slot machines also have certain limitations. In many federal states, such facilities must be located at a certain distance from schools, universities and addiction centres. In addition, a maximum of 12 slot machines may be installed in an arcade. Restaurants and bars should not have more than three slot machines. The licence costs for an arcade amount to 150 – 3,000 euros, depending on the federal state.
Online gambling is almost completely prohibited in Germany. Only 20 licences for online sports betting were issued. However, online betting on horse races and advertising licenses are permitted.

Those wishing to apply for a licence must prove that they have sufficient financial resources, are reliable and have the necessary experience.