The current situation on online gambling in Germany is that it is illegal to play at foreign websites that are not in possession of a German gaming licence. This also includes operators with a Maltese remote gaming licence. The German State Treaty for Gambling prohibits these activities. However, the treaty is being heavily criticised by the European Commission, and it is unclear as to whether it will remain effective.
There is a distinction between online casinos and sports betting. Germany plans to liberalise the sports betting market, and decided to issue 20 licences to German and European operators. This process has now been deemed unlawful in the eyes of the European Commission, as the application process was not transparent, and still no licences have been issued. The reason why they have not been issued is that some operators who were left empty handed and did not get one of the 20 licences, took legal action, which in turn brought the whole process to a halt, and no one received a licence. There is no explanation as to why it should only be 20 licences either. The lack of transparency of the application requirements and necessary criteria was by far the most fundamental mistake in the application process. The EU law requires applicants to be informed about the requirements beforehand, which did not happen, and now the reasons for the rejection are unclear and appear random.
Online gambling is still illegal in Germany, and German citizens are not allowed to gamble on foreign websites, even if they are from within the European Union. However, this is in conflict with the trade laws of the EU, and has been criticised as well. In a recent case, the German authorities even fined a Blackjack player when they discovered that he had been gambling online. His winnings were seized and he had to pay a fine.
Germany has one of the largest markets for online casinos, poker and sports betting. It is growing fast and it is important that the market is regulated soon. The recent statements from the EU commission about the unlawful restriction of sports betting and the state monopoly may help solve the problem.
The Malta gaming licence is still a valuable document, and according to EU law it can be used to offer services to all nations in the EU and abroad. Entrepreneurs or companies who wish to obtain a licence from the MGA can contact us for further information about the process, the legal status or assistance with the application.
