German State Treaty will take effect nationwide after Nordrhein-Westfalen approval

The parliament of the German state of Nordrhein-Westfalen has recently approved Germany’s Gambling State Treaty, Der Glücksspielneuregulierungstaatsverag (GlüNeuRStV), making it the final state to do so.

This approval is critical for the GlüNeuRStV’s implementation, as the treaty will now take effect on July 1, 2021. It will apply to 16 federal states.

The state of Sachsen-Anhalt was the fifteenth to sign the treaty, meaning the new regulatory body will be based in Halle by 2022. By offering test purchases and blocking IP addresses, this body will be able to monitor users’ activity and ensure that all play is legal.

In March 2020, German heads of state approved the GlüNeuRStV for the first time. The treaty will broaden Germany’s igaming offerings beyond online betting to include online casino games.

Certain aspects of the treaty, however, have sparked debate.

A 5.3% turnover tax will impose on online slots and poker. According to a report released today by Entain, Flutter, and Greentube, this tax rate could result in a channelization rate of just 51 percent.

Only bets on the final score or the next scorer will be permitted during live sports betting. The Deutscher Sportwettenverband, a German operator association, has spoken out against these provisions.

The treaty also imposes monthly financial limits for all users, set by the players themselves, to ensure responsible gambling provisions.

There is already a transition period in place. Operators can offer online casinos before the treaty takes effect, but only under the treaty’s terms.

“This state treaty was a Herculean task, and it serves as an example of how German federalism lives and functions. And also how it achieves the best results through sometimes arduous negotiations.” Prime Minister Armin Laschet stated.