The Controversy on German Online Gambling

12/05/2011
By Pamela PattersonGoogle

The Minister Presidents of the German Lander are supporting the adoption of a State Treaty regarding online gambling.  In this treaty, online operators would be limited to twenty licenses and a five percent turnover tax would be implemented.  It would also place serious restrictions on betting amounts and prohibit online gambling, including poker rooms and casinos.

 

The European Commission has already rejected the proposal.  The Chief Executive of the Remote Gambling Association, Clive Hawkswood, has expressed his opinion of the State Treaty.  The RGA is the largest association of online gambling operators.  Hawkswood says he is disappointed with the terms of the State Treaty and that it does not compare to other measures adopted by more moderate countries such as Spain and Denmark.  They are planning to implement regulations that allow online gambling and impose a gross profits type of taxation.

 

Hawkswood does not see the connection between regulating the online gambling market and what the Treaty actually says.  He doesn’t feel that the Treaty will stop German gamblers from going online in other jurisdictions where online gambling is allowed.  Previous policies have had no effect.

 

The European Commission stated that the State Treaty violated their law, according to Hawkswood.  This makes the proposal by the German state Schelswig-Holstein look better.  It was an online gambling law that took effect when Schelswig-Holstein could not reach agreements with other states.  This proposal has already been accepted by the European Commission and uses the gross profit method of taxation.  It is beginning to look more enticing to online operators and gamblers.

 

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