Germany’s new State Treaty on Gambling has been signed by leaders of the country’s 16 federal states, paving the way for its implementation from July 1, 2021.

The government of the state of Berlin announced the signing of the treaty Monday in its capacity as the current chair of the prime minister’s conference, with the treaty now subject to ratification by each state parliament before its entry into force next year.

The new treaty regulates online casino gaming for the first time in states that choose to allow it, as well as online and land-based sports betting and retail gaming nationwide. The licensing process under the treaty is managed by the state of Hesse, while the state of Saxony-Anhalt will serve as national regulator.

The Deutscher Lotto- und Totoblock (DLTB), which represents the interests of Germany’s state lotteries, welcomed the signing of the new treaty for securing the state monopoly on lotteries.

“We see the new regulation as further confirmation of the public interest-oriented lottery monopoly in Germany and expect that the regulation, especially in the online area, will suppress the illegal market,” said Jürgen Häfner, managing director of Lotto Rheinland and current head of the DLTB.

“After the signature, action must follow,” added Lotto Baden-Württemberg chief executive Georg Wacker. “Now the ball rests with the state governments to convert the treaty into valid state law so that the new regulations can come into force as planned on July 1, 2021.”

“In terms of effective youth and player protection, the supervisory authority in Saxony-Anhalt must be able to get to work as quickly as possible,” Wacker added. “If this does not happen, the proliferation of games of chance on the Internet that has been observed for years will accelerate. The legal guard rails must be controlled and violations sanctioned, otherwise the new State Treaty on Gambling is nothing more than many pages of paper.”

Authorities in Hesse issued the first 15 sports betting licenses under the new state treaty in mid-October, with double that number of applications still pending.

The period leading up the implementation of the new treaty will be governed by the transitional regime adopted in September, which allows operators to serve the market in accordance with the new regulations coming into force on July 1 next year.

Gaming Intelligence