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Compliance Updates

Gambling Regulation in Germany: A significant Blow for All Local Operators?



Gambling Regulation in Germany: A significant Blow for All Local Operators?
Reading Time: 4 minutes


Is the German gambling market facing an uncertain future? Over the past few years, tremendous delays and changes have cast doubts over the German betting market. In 2012, 16 German federal states passed a treaty on betting, intending to launch sports betting in the online casino world.
Read on and learn about the uncertainties facing the German sports betting market.

The Future of Online Slot Providers

This year, the federal states passed a new gambling treaty, with the primary aim of licensing and certifying a regulated market rather than having a large black market. The same case applies to poker games and online slots which includes most games from developers like NetEnt, Microgaming or Big Time Gaming with their ground-breaking slot engines like Megaways or Megaquads. Thanks to the new gambling treaty, the prohibition of online casinos was lifted in July 2021.

In addition, the treaty will allow the registration and licensing of online casino providers and sports betting providers. Despite the newly proposed betting model, the state lottery monopoly is set to remain operational.

Has the Federal States Treaty Put an End to Online Gambling Uncertainties?

If for a minute you thought the treaty would put an end to the doubts and uncertainties facing the German gambling market, you’re mistaken. Earlier in April, the Darmstadt Administrative Court ceased the awarding of licenses to local operators. A few weeks later, the ruling was challenged by Vierklee, a renowned sportsbook operator.

According to the Hessian Court, over 30 local operators had applied for the gambling license. Also, an addition of 20 casino operators had severe intent to apply. More than 99% of online sports betting activities in Germany would have moved to the legal gambling market if the applications went through.

The Take of DSWV on Betting Uncertainties

Since then, multiple betting operators have been left in dismay, describing the ruling as a big blow to the German gambling industry. DSWV, an association that advocates a competitive and modern regulation of sports gambling in Germany, has slated the betting regulations and policies in the country as non-competitive, also see this article.

The association claims that premier championships like Bundesliga miss out on advertising income and sponsorship deals. This is because the country features non-competitive sports betting policies and regulations. In addition, the German sports leagues have been lagging compared to other European sports leagues, such as the English Premier League.

According to Luka Andric, the DSWV managing director, the current delays in licensing and regulating the online betting market is inconveniencing. Luka Andric adds that the delays would cause the country a great deal in terms of securing sponsorship deals for clubs.
The common conflicts between states governed by Conservatives and those managed by the Social Democrats have been resolved. This implies there is an agreement to enact the 2021 Interstate Treaty in real-time.

Effects of Halting the Betting Licenses

Halting the process of awarding licenses to local operators is not only frustrating but also discouraging. Multiple betting operators had invested efforts and time preparing the license application forms, only to find out the process had come to a halt.
Sports betting makes a significant economic stand, considering Germany has a large population size.

So, how can the German sports betting industry thrive? DSWV states that it’s essential to regulate the sports betting market. Whether the industry will thrive entirely depends on the authority’s commitment to block local operators without licenses from providing their betting products to German consumers.

Therefore, the federal states need to make several regulatory amendments to the existing gambling policies. As a result, German betting enthusiasts will be channelled towards licensed and governed operators.

Sports Betting Measures and Restrictions

Over the years, the black market has been an area of concern to several gambling jurisdictions. Recently, renowned authorities such as KSA (Netherland’s gambling regulator) and SGA (the Swedish Gambling Authority) have pushed strict regulatory proposals to govern online sports betting activities.

The German regulatory authorities have also put forward strict regulations and measures. These restrictions include a minimum stake limit of €1on all virtual machines. Other measures include a live streaming ban on sports betting websites, limited in-play markets, up to five-minute delays when switching to another betting website, and commercial advertising for online poker, virtual slots, and casino games.

German Sports Betting Operators Take on Proposed Restrictions

The proposed restrictions have provoked critical responses. Local operators have claimed the measures fails to focus on bettor’s protection, hence considered less competitive and less attractive. In addition, the local operators have termed the measures as unfulfilling and will create a less competitive experience for bettors.

According to Lycka, the director of regulatory affairs states that the measures imposed by the states will be less attractive than the unlicensed market. As a result, the move can encourage gamblers to wager on black market websites. However, it has been revealed that the regulations will be amended to favour local operators and gamblers in real-time. The regulators are set to engage politicians to come up with sensible and necessary amendments.

Why It’s Important for Sports Betting to Operate in a Regulated Market

It’s essential for sports betting to operate in a regulated gambling market. In Germany, sports betting has become more popular, thanks to the media and featured advertising channels. Over the decade, the German betting market has grown tremendously. The trend is expected to continue once the sports tournaments resume.

Final Thoughts

The bottom line is; the proposed measures are not encouraging channelization. As it stands, local operators claim the measures put forward by the regulatory authorities encourage black market play. Betting enthusiasts and operators have been longing for gambling regulation in Germany. Soon, sports betting websites will become legal. However, this does not mean the existing uncertainties will be done away with. All in all, the local gambling operators are hoping for a more certain future.

Compliance Updates

Dutch Regulator Imposes €400,000 Fine on TOTO Online



Reading Time: < 1 minute


Toto Online received a €400,000 fine from the gambling regulator in the Netherlands over breaches related to advertising to young adults.

The Kansspelautoriteit made the ruling after finding TOTO Online’s advertising between October 1, 2021 and February 1, 2022 included people aged 18-23 in its reach, with gambling companies in the Netherlands prohibited from targeting that age group.

TOTO Online did not breach the advertising rule after February 1, 2022.

René Jansen, chairman of the KSA, said that the law covering vulnerable groups, including young adults, “must be given extra protection.”

“Gaming providers must fully respect the rules intended to protect vulnerable groups,” he added.

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Compliance Updates

TonyBet expands and preparing to launch in the Netherlands next year



TonyBet expands and preparing to launch in the Netherlands next year
Reading Time: 2 minutes


The company commented on the news about obtaining a license and announced plans for the next year

The online gambling operator TonyBet has received a license from the Dutch Gaming Authority (KSA) and can start operating in the Netherlands. The global operator now is preparing to launch next year. TonyBet will enter the Dutch market with a modern gambling platform Powered by the SoftLabs gaming platform, Tonybet will stand out from the crowd with its fast performance, new design and wide selection of games.

TonyBet offers sports betting services and an online casino and is based in the Netherlands with a local office in Utrecht. Next year, almost all products allowed in the Netherlands will be presented. Meanwhile, TonyBet will pay special attention to the football offers and various entertainment activities, such as the local football league.

«Adding the Dutch gambling license to our growing portfolio of local licenses was an important objective and we are very proud to have achieved it. Although the competition is very high, but still young in the Netherlands, we are sure that there is room for a strong local player with a distinctive approach. We want to accomplish this by not putting the focal point on the product, but also on what can our brand add to the total gambling experience, on- and offline. For now, all focus is on building a team in the Netherlands and assure a successful launch next year» – says Jesse Pas, Country Manager of TonyBet in the Netherlands.

TonyBet aims to become the world’s leading provider of quality sports betting and iGaming entertainment and has already obtained online gaming licenses in several countries: Spain, Portugal, the UK, Ireland, Canada, Latvia, Estonia, and Malta

«TonyBet’s development is focused on Canada, Spain, Portugal, UK and Baltic States. We are very excited to enter promising Dutch market. We are committed to providing players in Netherlands with safe, secure, innovative and exciting online gaming. We will adopt and implement our 12 years of international experience and best practices» – says Victor Troitsin, CEO of TonyBet Group.

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Compliance Updates

SIS awarded ESIC Gold Standards accreditation for Competitive Gaming offering



SIS awarded ESIC Gold Standards accreditation for Competitive Gaming offering
Reading Time: 2 minutes


Endorsement marks out supplier as only esports betting events provider to officially meet new integrity measures

SIS (Sports Information Services), the leading multi-channel supplier of 24/7 live betting services, has been awarded the Esports Integrity Commission’s (ESIC) Gold Standards, the highest possible accreditation from the industry association.

The award sees SIS become the first esports betting events supplier to meet ESIC’s stringent new criteria, created to set unmatched levels of integrity and safety in the esports betting industry, for its Competitive Gaming portfolio (Esoccer, Ebasketball and CS:GO).

The purpose of the ESIC Gold Standard is to build on its existing principles by setting out a list of standards for tournament organisers, ensuring that events are run to the highest level of integrity and safety for the benefit of all stakeholders.

With stringent integrity measures in place, SIS Competitive Gaming follows best practice outlined by ESIC in addition to strict operational measures in place to ensure that each event is fair.

Each SIS Competitive Gaming head-to-head match, all of which take place from within SIS’ UK-based self-contained studios, is streamed live with experienced casters providing live in-game commentary. The streams take place through a secure platform that is exclusive to licensed operator sites where the age of the audience has been verified and is not available on open streaming services, meaning there is less danger of toxic messaging of the sort that is often carried on unlicensed sites.

All events are overseen by a dedicated ESIC-trained integrity referee and have a real-time link to SIS’ expert trading team, which closely monitors betting activity. Rigorous gamer competitiveness and predictability tracking measures are in place, through supremacy and volatility reporting, with all events taking place in a jurisdiction with well-respected legal and employment rights.

The new ESIC Gold Standards have been created to elevate transparency and impartiality, and required SIS to meet a number of rigorous requirements across the board, including:

  • No communication devices allowed anywhere in the gaming studios
  • Minimum of three employed personnel (independent from gamers) watching every event
  • Controlled fixed game settings to ensure fair and competitive play
  • Employees are fully background checked for criminal records, with references taken
  • Ensure all gamers are of sufficient skills and expertise to compete against other pro gamers.
  • ESIC anti-corruption code to be signed by all staff and gamers

SIS continues to work with ESIC to evolve the Gold Standards to improve Integrity and the visibility of clear tangible rules and standards by which tournament organisers should run events.

Adam Conway, Head of Esports & Competitive Gaming at SIS, said: “We are extremely proud to have received this new accreditation, which shines a light on the very high integrity and safety standards we have always put at the core of our Competitive Gaming offering.

“Our operator partners and their customers appreciate our high levels of integrity, such as visible referees invigilating every game, making us the only esports betting events supplier to do so.”

Ian Smith, Commissioner at Esports Integrity Commission, said: “ESIC’s new Gold Standards set heightened levels of integrity and safety in the Esports industry for the benefit of all stakeholders, and through ongoing assessment of SIS’ Competitive Gaming operations, which meet all the key integrity requirements, we are delighted to award SIS with ESIC’s Gold Standards, our highest possible accreditation”.

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