Germany's Schleswig-Holstein's Online Gambling Law E.C. Compliant

Published Thursday, May 12, 2011 -

The German territory of Schleswig-Holstein is the northernmost of the sixteen states of Germany, comprising most of the historical Duchy of Holstein and the southern part of the former Duchy of Schleswig. This area recently made online gambling history when it brought in a draft gambling law that rocked the industry in the German jurisdiction. Now the European Commission has ruled that the draft is compliant with the European Union rules regarding free e commerce trade among member nations. 

The approval by the European Commission means the law will now go back to the state parliament for a second reading and final vote. The timing is critical regarding the vote which if it does not occur before summer recess will have to wait until the next session of parliament resumes in September. If the vote does go forth this session then, Schleswig-Holstein could possibly have a licensing regime up and functional as early as this fall.
Much to the concern of online gambling operators from around the globe the draft law, would have operators pay a 20% gross profits tax and no products would be off limits. The proposed scheme in the other 15 German states would allow only sports betting and charge a 16.66% turnover tax.

It has been suggested that the proposed German plan will only take in seven percent of the online gambling market in Germany. It was noted by co-CEO for (Pwin) Norbert Teufelberger  that “the current state treaty implemented a total internet ban, payment restrictions and ISP blocking.” The principals at the huge online gambling firm were pleased to see the Schleswig-Holstein gambling laws adopted by the European Commission. Even though there were restrictions on the market in Germany Bwin pre merger was deriving as much as 25 percent of its revenues from the German jurisdiction.
Teufelberger and Ryan were both on side stating, “As long as our lawyers tell us what are doing is compliant with the regulatory framework in this country then we will continue to operate.”



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