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German slot machine associations demand online casino regulation
Germany’s leading slot machine manufacturers and operator associations have spoken out in favor of the third amended gambling contract, but have called for future regulations through the legalization of online slots.
The Automatenverband Niedersachen eV (AVN), the association of vending merchants Berlin and East Germany (AV), the Fachverband Spielhallen (FSH) and the Bundesverband Automatenunternehmer (BA) declared that they welcomed the state treaty as he and the online sports betting Licenses finally awarded.
However, the quartet added that this was “only the first step in the market’s re-regulation”. The Ministers of State have agreed to implement the contract for a short time until June 30, 2021, to finally grant sports betting licenses. Efforts to limit the market to 20 licensees were derailed by legal challenges until the rules were amended in March of this year to lift the license cap.
The new legal framework must ensure that operators are removed from illegal offers in order to avoid losing jobs and tax revenues to offshore providers and to ensure a high level of youth and player protection, say the associations.
“Therefore, the associations are in favor of applying the sports betting regulatory approach to commercial gaming machines,” said the associations. They argued that by applying a qualitative approach to online casino licenses, lawmakers could ensure that players were attracted to legal offers and away from unlicensed websites.
Heinz Basse, chairman of the AVN said that “The State Treaty on Gaming points in the right direction. But lawmakers must be careful not to repeat old mistakes, and effective regulation must be based on the quality of the business [in the market], as high-quality companies ensure effective protection of players and minors.”
BA president and AV chairman Thomas Breitkopft added that qualitative and non-quantitative regulations are the future.
“Only a sound legal framework can guarantee efficiency and consumer protection,” he said.
In August, the European Commission criticized the treaty and warned that it would give operators little incentive to obtain licenses, even though the legislature claimed that this would not change the legislation.
Analysts came up with the suggestion that the restrictive framework, where sports betting is the only gaming product allowed, but no in-play betting is allowed, and a monthly spending limit of $ 1,000 for players could result in the licensees’ German revenue being cut.