Germany: Gambling Treaty: CDU drives negotiations

The State Treaty on Gaming is intended to be a legal framework which sets gambling providers on the Internet and protects the gambler. So far, the law has missed this claim by far. After a recent failed reorientation, it should now be properly addressed. The CDU and CSU are campaigning for speedy negotiations. CDU parliamentary leader Mohring makes the gambling providers hope with the following words: "Gambling will always exist after all human experience. Our task is to design it so that it does not cause any harm. "

The ratification of the Second State Treaty on Gaming has failed. The current contract is still valid until June 30, 2021, but is recently considered obsolete and ineffective. Ole-Christopher Plambeck as spokesman of the budget and finance policy of the CDU, would like to see the Schleswig-Holstein model implemented. The competition would be promoted by rewarding providers who comply with the rules with a license. Only the preservation of the lot monopoly has been preserved in the new approach.

Gambling Treaty Part 1: The lottery monopoly

The spring conference of the budget and financial policy spokesman of the CDU / CSU parliamentary groups in the federal states and the federal government from 9 to 10 April 2018 in Kiel has passed a resolution on the lottery and gambling . It is divided into four sections, which are to be used to regulate the new gambling regime. We go through the ingredients one by one.

"1. The monopoly of the countries for the organization of the lottery play is preserved, in order to be able to finance in the future also in particular the Landessportbünde, the welfare associations and other non-profit organizations as well as culture and monument protection from the surpluses surely and plannable. "

The new drafting of the State Treaty on Gambling should also leave the lottery monopoly untouched . However, there is still need for action. Secondary lotteries such as Lottoland set their game on the draw of other lottery games and dig the state lotto in this way from the customers. Basically, it is a worthwhile goal to continue to support sports, welfare and culture with the lottery revenues. However, the number of players in the lottery is declining. Not only the competition from abroad can be mentioned here. Young players try to love sports betting or the online casino. Perhaps a general gambling tax, of which a small part is diverted to finance the previous associations and organizations, would be the better option.

Gambling Treaty Part 2: Comprehensive regulation

In the renegotiation, after the back and forth in gambling has been going on for many years, all aspects should now be considered. This is apparent from the second part of the decision.

"2. No market, no provider, no variety may remain unregulated. Future regulation should set all providers a sensible regulatory framework. "

This is basically a very good news. Because this planning implies that even the online casinos are considered . Under current German law, casino games are prohibited. The reality of course looks different in this regard. The providers insist on the European freedom to provide services and the state also accepts the taxes of the casinos with thanks. Therefore, it makes sense to make nails with heads here and finally the longer- lived legalizationhold. Also for sports betting, this point could mean further opening and greater competition. Nevertheless, poker and, of course, fantasy football should also be considered in the course of this. Virtual bets, financial bets and other types of games could also be mentioned.

Gambling Treaty Part 3: Player Protection and Concessions

As already explained under point two, no provider should remain without regulation. But now we come to a very reasonable restriction. And this is to seek the protection of the player.

"3. Player protection is strengthened by a qualitative limitation on the awarding of concessions. The awarding of the licenses depends on the qualitative goals.

a) youth and player protection,

b) fraud prevention,

(c) prevention of the development and control of gambling addiction,

d) Combating the black market and related crime. "

We understand this section to mean that, in principle, any competitor can expect a license, provided the rules regarding player protection are met. Thus, a large part of the currently active gambling providers should be allowed to hope for a concession. The barriers to player and youth protection are sensible instruments of regulation. The fight against the black market bears fruit only with the formulation of the new law. Finally, it needs a monitoring body in the style of a federal authority .

Gambling Treaty Part 4: Avoid loss of revenue of the countries

At this point, it will undoubtedly be somewhat complicated. Because of the new rules, countries should not lose their income.

"4. As a result, the countries must not incur loss of revenue through a re-regulation. "

If we look at the German Lotto and Totoblock (DLTB) alone, referring to Lotto Hessen , a huge drop in sales in recent years is noticeable. In this regard, the question arises as to whether the past revenues should be achieved or whether the countervalues ​​of the past year are the benchmark. The lottery could restore part of its income if secondary lotteries are banned. However, the focus of young players on sports betting and in online casinos can be seen. Lotto will continue to lose players. In order to keep the incomes of the countries constant, therefore it needs another solution - like a general taxation of the gambling.

The decision on the Gambling Treaty of the CDU / CSU parliamentary group can be found in the following document .

About the author: Martin Hill