The RGA Speaks on German Online Gambling

The proposal that had been rejected by the European Commission was supported by the Minister Presidents of the German Lander.  It was urged to adopt the draft State Treaty on online gambling.  However, the Remote Gambling Association spoke up against the proposition.

Why has this drawn their attention?  The proposal would limit licenses issued to operators to twenty and adds a five percent turnover tax.  It limits betting amounts and prohibits online gambling and is expected to take effect in July 2012.  The Chief Executive is Clive Hawkswood who was disappointed in the measure.  It is not comparable with other European countries that are following more moderate measures.  These countries such as Denmark will allow almost all kinds of online gambling.  Taxation would be based on gross profits.

Hawkswood states that the treaty will not prevent German gamblers from participating in online casinos in other jurisdictions.  Although the Minister Presidents claim they want to encourage sports betting with operators who are regulated, Hawkswood doesn’t see this with online casinos and poker games.

The German state of Schleswig-Holstein has adopted their own online gambling law because it could not gain agreement with other states.  It has already been approved by the European Commission and uses the gross income as a basis for taxation.  The commission had already indicated that the State Treaty violated their law.  Other states may follow the Schleswig-Holstein plan.  Hawkswood does not see a connection between providing citizens with a regulated online gambling market and the actual wording of the State Treaty.