German Online Gambling Licensing Process Stalls

Published Saturday, July 06, 2013 -
German Online Gambling Licensing Process Stalls

The European Commission is swamped with concerns over the introduction of internet wagering in various member nations. The arguments that have arisen over free e-commerce violations by independent nations continue to go unresolved.

In Germany which has stood out as an example of slow implementation of compliant online gambling legislation there is still little progress after an entire year has passed since the laws were changed. The chosen regulatory model has proved to cause legal problems and is not being implemented in a timely manner.

The General Secretary of the European Gaming and Betting Association, Maarten Haijer, commented, “Numerous questions concerning sports betting remain unanswered in Germany, despite the fact that the tender procedure has been running for months. Even if the allocation is successful, it will result in a market regulation that will bring disadvantages for everyone involved - not only the providers and authorities but also amateur and professional sports and the advertising sector, which are closely dependent on betting providers.”

The process in Germany was selected by federal state leaders which elected to issue only 20 sports betting licenses which do not meet European Commission requirements as it has failed to provide candidates with clear, transparent and reliable information concerning the tender criteria. The subsequent legal arguments concerning the application process have been slowing the procedures even more. Online poker and casino providers are not part of the opening of the German market even though these activities present a much larger portion of the online gambling market.

Haijer continued to explain, “Germany is a prime example of how a political compromise that no one wishes to disavow can create a very poor procedure. For our members who are active throughout Europe, the German approach is simply incomprehensible against the background of successful European regulations and the continued existence of concerns in terms of European law.”

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