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Germany begins sports betting licensing process

Germany’s experimental sports betting regulatory regime started on January 1, which means that operators willing to run wagering services on the territory of the country can now only do this after obtaining licenses from the competent licensing authority, the Darmstadt Regional Council of the state of Hesse.

That initial phase for the regulation of sports betting will run through June 30, 2021, and German lawmakers will be expected to have crafted a refined, permanent framework until then.

The Darmstadt Regional Council can now start issuing licenses to those operators that have already submitted their applications. It will also continue to accept and review newly submitted applications.

The authority said in a notice dated January 2, 2020 that it would accept applications submitted by post or email and that licenses would be granted to those operators that meet the minimum requirements that were made known last year. It also became known that the licensing procedure would not be subject to any additional deadlines.

The applications that have already been submitted will be processed on a “first come, first served” basis.

Third attempt on gambling

After two unsuccessful attempts in previous years, Germany’s 16 states approved in the spring of 2019 the so-called Third State Treaty on Gambling. The piece of legislation set out the experimental sports betting regulation period that started on January 1 and will remain valid until mid-2021, and enabled betting operators willing to operate in Germany to obtain permits and run their operations in a regulated environment.

The State Treaty on Gambling removed a cap on the number of sports betting license applicants that its predecessors – the First and Second State Treaties on Gambling – contained. Germany’s previous efforts to regulate sports betting were slammed by industry stakeholders and EU authorities for being way too restrictive, and the cap on the number of operators that were to be allowed to enter the local market was one of the most heavily contested provisions.

However, German license holders will still face heavy restrictions once they are given the green light to operate in the country. They will not be allowed to offer in-play betting as well as online casino and poker products.

Source: GMB / Casino News Daily