Development of gambling in Germany
People used to go to the Game Room, today you can gamble in online casinos from the comfort of your sofa. When the first online providers came up, you usually had to install a computer program on your desktop and then you could play for real money on your PC. But that, too, is history. The games of most online casinos can now be used on a smartphone or tablet without any problems. Various apps also make gaming even more comfortable.
Due to a tightening of the State Treaty on Gambling, 2017 had to close down many gambling halls since December. However, not because these providers would have been illegal, but because many operators did not meet the requirements of the State Treaty on Gambling and thus no longer got an operating license.
Legal and actual situation
The gambling contract
In Germany, the basic conditions of gambling are regulated by the State Treaty on Gambling. This is a contract that the states have concluded among themselves. In addition, all federal states still have their own gaming laws.
At first glance, the situation seems clear. For in § 4 of the State Treaty on Gambling, it is forbidden to organize and place gambling on the Internet. Nevertheless, the online casinos are bustling on the internet. But how does that fit together? The explanation is simple. The companies that operate online casinos are not located in Germany, but for example in Malta, Gibraltar or in British or Dutch overseas territories. Theoretically, the casinos should not accept players who live in Germany.
The casino industry sees this naturally different. On the other hand, it refers to the freedom to provide services in Europe. Thus, a casino, for example, licensed in Malta, can offer its services throughout the EU.
Your own way from Schleswig-Holstein
When 2011 entered into a new state gambling treaty, the state of Schleswig-Holstein went its own way. For the first time in German history, this province awarded gambling licenses for online casinos. These licenses expired in January this year, but are to be extended in a transitional phase until initially 2021. The advertising of some casinos with the Schleswig-Holstein license, however, gives the impression as if one had a license for Germany. Since the gambling law of Schleswig-Holstein, of course, only valid there, playing in an online casino was only legal for players who lived there. So what makes up a rather small proportion of the total population of Germany. In any case, the fact is that there is currently no online casino in Germany that has a license from a German state.
Advertising on radio and television
Until recently, many casinos and broadcasters also advertised online casinos. However, this has dropped significantly since this month. Trigger was according to information from the NDR joint letter from the state media authorities from the February to the 200 private radio and 300 private television stations should have gone. This letter stated that advertising for online casinos is illegal. Until January 2019, the advertising casinos could of course claim that they had a license from the state of Schleswig-Holstein. But since these licenses have now expired, the advertising would actually be illegal. The state media authorities register their letter as a success, because the advertising violations have decreased noticeably.
However, since Schleswig-Holstein plans to extend these licenses, we will see advertisements on TV or hear them on the radio at the latest. And even if the advertising is directed only at persons within the scope of the Gambling Act of Schleswig-Holstein. The fact is that you can reach all the people in Germany by advertising and the casinos so just attract people outside their license.
Outlook
The Federal Government Drugs Commissioner, Marlene Mortler, has called for strict rules for online gambling in Germany in the run-up to today's Minister Presidents' Conference. The purest "wild west conditions" prevailed.
As already described, Schleswig-Holstein plans to extend the gambling licenses in a transitional phase to 2021. Because at 30.06.2021 the current state contract expires. How it should continue afterwards, however, is unclear.
Problems
Basically, there are currently two major issues. On the one hand, it actually lacks stricter regulation for online casinos, sports betting companies and Co. However, this does not mean that we have to act against dubious providers. There are not many of them anymore. But it's about the protection of the players.
On the other hand one wants legal security. The Federal Administrative Court has confirmed in 2017 that online gambling is illegal due to the existing regulations in Germany and does not violate EU law. However, it is not possible to enforce this ban. Because the casinos are located in countries with which Germany has no enforcement agreement.
It is more than doubtful whether German politics will even be able to control the gambling market on the internet even close to it. Even the most stringent laws do not help. Because as we all know by now, the internet is writing its own laws. This has already been seen in the privacy of the Internet. For more than two decades, Internet giants have been diligently collecting data, for example, to offer personalized advertising. Then came with the data protection regulation also bureaucracy. It has nothing, except more bureaucracy and more e-mails that you do not want to have.
As with many things on the Internet, nobody expected online gambling to grow that much. Anyone who still tries to control this business has not understood the Internet. Because this knows nunmal no country borders. No matter what you try now, you can only react. The control of gambling in Germany has long since lost the policy.