German State Treaty to commence from July 1 after S-A approval

Der Glücksspielneuregulierungstaatsverag (GlüNeuRStV), Germany’s State Treaty on Gambling, has been ratified by the state parliament of Sachsen Anhalt. It will be implemented on July 1.

The approval of Sachsen-Anhalt was critical to the GlüNeuRStV’s implementation because it will host a new regulatory authority based in Halle. The process of establishing this body is currently underway. Sources estimate that it will be fully operational by the end of 2022.

Its parliament is the fifteenth out of sixteen to vote in favor of the Treaty, with Nordrhein-Westfalen the final state to hold out. The legislation needed to be ratified by a minimum of 13 people. It happened in March when the parliaments of Sachsen and Schleswig-Holstein agreed.

The GlüNeuRStV, which legalizes online poker and slots for all eligible operators while limiting the number of table games available, was first approved by Germany’s heads of state in March 2020. In May,  it was notified to the European Commission before being ratified by Minister-Presidents in the 16 states in November.

The Treaty has slowly made its way through the German states. It was after the commission granted a standstill period for discussion until September 2020. By March 2021, 13 of the required 16 states had ratified the proposal.

Implementation of Treaty

Operators within Germany had to operate within a transitional period from October 2020 to adhere to new regulations. This slow process caused concerned to the Deutsche Sportwettenverband (DSWV); it saw a mass migration of players to unlicensed sites.

Sports betting, which was legalized by the 2012 State Treaty on Gambling, has already begun to take shape in some parts of the country. GVC, Gauselmann, and Tipwin already got the license.

States must follow the GlüNeuRStV’s terms until December 31, 2028, after implementing it. States will be able to withdraw from the Treaty after this date if they give a year’s notice.

But not all aspects of the legislation have proved to be popular.

“The new State Treaty on Gambling is an important step forward in modern regulation, but there is still room for improvement,” Dahms said.

“This must re-adjust as early as possible. We have high hopes for the new authority, which will shape and objectify the future debate on gambling policy.”