EGBA Criticises Germany’s Proposed iGaming Regulations

The European Gaming and Betting Association (EGBA) has criticised Germany’s proposed iGaming regulations. EGBA said that the regulations will fail to attract players to the regulated market instead of unlicensed sites.

Maarten Haijer, Secretary-General of EGBA, said the proposed regulations submitted to the European Commission are too tight to be able to win back players from the unregulated market after a late start from Germany.

They include a deposit limit of €1000, a stake limit of €1 per spin on slots, no live betting and a ban on advertising online gambling between 6 am and 9 pm.

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Haijer said: “The starting position of Germany is so bad that, in 2017, the Düsseldorf Institute for Competition Economics (DICE) predicted that the country had a channelling rate of only 1.8% – meaning 1.8% of online gambling activity in Germany took place on websites which are licensed in Germany – compared to 95 per cent in UK and 90 per cent in Denmark.

“The new policy can only be effective if it ensures that gambling websites licensed in Germany are more attractive than those outside it – so customers will play on these websites rather than unlicensed ones. This requires the new policy to meet the customer’s needs by ensuring there is sufficient choice in the market – including brands, products and bet offerings.

“The policy measures currently on the table are highly questionable. They are overly prescriptive and introduce restrictions which are not evidence-led.

“The combined effects of the proposed restrictions on player accounts (deposit and time restrictions), on products (e.g. the ban on online casino is not fully lifted) and on bet types (e.g. live betting will be banned), jeopardises the task of achieving a high channelling rate and sets the scene for continued political and legal challenges.”