Legal aspects of German Online Gambling

Legal aspects of German Online Gambling

Online Gambling is a genuine and big source of fun for individuals all around the world and Germans are not making an exception. Though hosting a German casino is banned, the legal aspect of placing bets online is not quite defined. To some the legislation specifically points that online gambling is outside the law, the responsible authorities appear to be more interested in which operators must have the legal rights to grant their service to the public.

There are many Germans keen on playing at online casinos, still there are some a bit more indecisive about involving with this source of entertainment. The dubiety referring to the gambling legislation keeps many timid and afraid to indulge into online gambling activities for the fear of getting into trouble.

As this business sector is progressing fast it may turn into a profitable source of revenue for the governing authority. Considering all said above it is getting even more crucial that laws and regulations are enforced in the gambling industry in order to provide punters with a dose of security. These rules will guarantee as well that players will participate only in responsible gambling. This article has the purpose of throwing light on the current legal status of online gambling in Germany.


Blending outdated and modern

Despite the huge remunerative possibilities the online gambling industry in Germany holds, with regard to the legislation it looks like the country has stayed in the oblivion.  During the last five years, the betting rules and iGaming regulations haven’t changed  significantly and at this point, it appears that the country is still hesitant to legalize or not the online gambling.

A new Interstate Treaty on Gambling was sanctioned by all 16 German states this year. The ineffectual news is that this pact is more or less the same as the 2012 gambling law with some more precise amendments. The treaty just widens the space for online sports gambling services throughout the country.

This new and negligibly revised version of the previous regulations seems to not satisfy the  European Commission. As the EU legislation and regulatory body, one of its main designations is to supervise the gambling legal adjustment procedures in member countries.  

Rising attention at the German market

The 2012 treaty granted permission to only 20 operators to get a license for providing gambling services in the state. This restriction caused a huge turmoil as the total number of the interested in operating on the German market entities was 35 at that point.

Back at that time, laws were dissatisfactory not only for the operators aiming to break in the market but to the European regulative authorities as well. This went even further as the EU Court of Justice decreed the law being illegitimate as to its violation of the criterion for independent commerce and service purveyance between member countries in EU. 


Though it was anticipated the new agreement to be more indulgent to operators allowing them to participate in the market it kept its restriction. The limit of 20 licenses  to be distributed to operators increased into 40. It is just to acknowledge that the remaining outside the regulations 15 operators will have the chance to get legal access to the German market. Yet, the numbers are still scarce if we take into consideration the constant and speedy growth of the online gambling business and the perspective of increasing cluster of operators willing to enter that market.

The freshly amended treaty may furnish the operators with a bit more of a carte blanche but it continues to violate the EU principles referring to free commerce and service purveyance.

Online gambling winnings taxation

In contrast to the fact that the operators of state-owned casinos are taxed 80% of their gross gaming incomes, casinos with private proprietorship have a different taxing scale to follow.  Notwithstanding the incertitude around the lawfulness of the German online gambling, plenty of the Germans participate in this extremely trendy reservoir of fun. Amongst the biggest issues for these punters is if their online winnings will be charged or not. No one would be happy to give away 80% of his winnings in the form of taxes and fortunately Germany is amongst a couple of places where these type of earnings are not liable to taxation.  If you hit the jackpot at a ground casino or online, the gains will be yours to the full. You ca enjoy a trouble-free gameplay without the concerns about tax restrictions.


The Forthcoming of Gambling in Germany

As being hesitant on what to do with the online gambling, legalize it or not, the German Government is beginning to sense the heat from all around. The EU regulatory authorities are still unsatisfied with the latest legislation as it contradicts with the European criteria for free commerce and purveyance of services. It will be not surprising if the Germans will be required to rewrite and build more adequate law-making structure.

Raising the limits and legalizing not only sports gambling but poker betting and online casinos as well is to be done not just for the European Commission’s sake, but this would accumulate larger revenues for the owned by the state casino operators.

The online gambling industry is a huge and mighty one that draws in punters from lawful and unlawful regions. The best course of action for Germany would be to fully   probate gaming online. By this act they will not only experience larger gains but will also establish a well-set, better performing and secure environment for the industry to thrive in and for the citizens to feel confident when taking part in online gambling.


Is Gambling Allowable according to the law?

In case you are a punter constantly residing in Germany, you can be pretty sure that it is totally OK to indulge into online gambling operations. You won’t be proceeded against for participating in a case of online gambling at abroad online casinos. You can choose amongst plenty of trustworthy online casinos that not only allows punter from Germany but purveys services in the German language as well. To be certain you are on the safe side, it is strongly advised to take a glimpse at our review of top online casinos for German players. It is crucial to pick a respectable and reliable online casino because no laws exist to work in your favor and protect your interests if your cash is missing or robbed.

Edward Griffin


Edward Griffin

Hey I'm Edward Griffin, one of the people behind I have been living, playing and working in the online casino world for the past 15 years. I am here to help you make the most informed decisions for your online casino experience.

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