German state North Rhine-Westphalia, the country’s most populous and richest, is opening to online gambling under the Fourth Interstate Gambling Treaty (GlüNeuRStv), the new federal regime regulating online gambling services that launched in July last year.
The state parliament -Landtag- passed a law last Thursday allowing the issuance of gambling concessions to iGaming operators, limiting the number of licenses to five. Online gaming will be limited to roulette, blackjack and baccarat: poker and slot games have yet to be approved.
“The population’s demand for such a range of games is to be channeled into a permitted market in order to attract players who would otherwise continue to play with black market providers,” reads the law.
The law passed seeks to reduce black-market activity in the region and risk of fraud and illicit advertising, plus tackle products with “particularly addictive game designs” through regulatory requirements. Measures for supervision and player protection are set to take a key place in the procedure for granting licenses.
“Channeling players into the legal market can also deprive the black market of its financial basis,” the bill reads. “Furthermore, the procedure for granting permits is regulated and it is determined which duties and taxes will have to be paid by the event organizers.”
While the legislation was backed by the Christian Democratic Union (CDU) and the Free Democratic Party (FDP), it was protested by the Social Democratic Party (SPD) and the Greens, which voiced concerns over a perceived lack of controls to stop gambling addiction. Opponents are seeking to include a prohibition on discounts and bonuses.
North Rhine-Westphalia will become one of the first states to launch an online gaming market in Germany, joining the state of Schleswig-Holstein. The announcement means big news for the country’s gaming industry: North Rhine-Westphalia is home to 17.9 million people and is the richest state in all Germany.
While the Fourth Interstate Gambling Treaty has been adopted by all 16 states, most have yet to allow iGaming under the new framework. The treaty gives federal states the freedom to create their own regulations.
While North Rhine-Westphalia and Schleswig-Holstein are seeking to open their market to other operators, the small state of Thuringia put forward legislation that would give it autonomous control over iGaming within its borders. If passed, Lotto Thüringen, the company which currently owns the state-run lottery, would become the sole operator.
It is unclear as of now which are the likely candidates for the North Rhine-Westphalia licenses, nor which is the deadline or expected date for when the state government will issue the appropriate iGaming permits.
Original article: https://www.yogonet.com/international/news/2022/02/25/61557-germany-north-rhinewestphalia-to-open-igaming-market-issue-five-licenses-to-operators
