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Germany


ONLINE


Oddset at the moment is the only German internet provider however because the German government has no jurisdiction over foreign companies operating from their own countries there are several operating sites in Germany. Bwin has been particularly successful and has gained a huge following in Germany. As they do not pay taxes in Germany it can also offer better odds than Oddset.


The online gambling and betting sector in Germany has been a minefield littered with obstacles and complications since it all began several years ago.


At the start of 2008 the Interstate Treaty on Gambling (ISTG) was implemented by 15 of the 16 German states and this was meant to have a four year lifespan before it was reviewed. The crux of this legislation was a prohibition on online gambling except horse racing. This also extended internationally to foreign bookmakers and gave permission for ISPs to block access to online casinos and other portals.


Few took notice and despite the threat of legal action the German government couldn’t in reality


5 2


In 2012 the German market decided to open up the sport


betting sector and abandon the monopoly system under the


ISTG. A clause in this treaty will allow for up to 20 online sports betting licences.


ban foreign bookmakers to offer their sites to German players.


Bwin, for example, reported in 2011 that 20 per cent of their €816m net gaming revenue came from Germany.


In 2010 the European Court of Justice claimed this treaty violated European law and by 2012 the betting market was partly liberalised and the country decided to grant concessions to 20 private bookmakers for sports betting shops and online portals.


In 2012 the German market decided to open up the sport betting sector and abandon the monopoly system under the ISTG. A clause in this treaty will allow for up to 20 online sports betting licences. However not a single licence has been issued to date. The treaty states the following:


l Limitation of 20 licences for sports betting only.


l Monthly limitation on stakes to €1,000 per cus- tomer


l Betting operators liable for a 5 percent tax on stakes (called Torpedo tax)


l In-play betting limited to final results and period of a game.


Damir Böhm of legal firm Böhm & Hilbert said: “The 20 licences under this process have not been provided. It is anticipated that this process can’t be completed in the next two years. This can be followed by a new procedure which is determined last one year. Thus, by the end of 2017 or beginning of 2018 there may be licences granted for sports betting in Germany.”


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