Nordrhein-Westfalen, a German state has approved legislation that grants five licences for online casinos to operators within the area.
In July of last year, the German State Treaty on Gambling Act (GluNeuRStv), which was approved by German legislators, legalized online gaming in Germany.
It was up to state governments how to regulate online table games. They could either create a monopoly, or issue a certain number of licenses that corresponded to the amount of casinos located in their state.
Nordrhein-Westfalen chose the second approach. This means that five licenses can be granted.
This is a response to public demand, and an effort to redirect players towards regulated channels instead of black market operators.
According to the legislation, licences are only granted when an operator doesn’t endanger safety of public or harm public interest. Operators must have a registered office in an EU state and operate in compliance with State Treaty.
The bill passed after its second reading with the support of the Christian Democratic Union of Germany and the Free Democratic Party.
Alternative for Germany proposed amendments. These included a prohibition on bonuses and discount offers, an advertising ban that was blanket, and a two-year cooling off period for those who offered online gambling prior to regulation. This amendment was not accepted.
A part of the bill stated that it was to create a permitted selection of online casino gaming. In order to draw players away from the black market, a market that allows such games will be created to satisfy public demand.
These providers would be able to play against fraud, manipulation and particularly addictive games and advertising methods through the regulatory requirements. By directing players to the legal market, the black market’s financial base can be deprived.
Recently, the state of Schleswig-Holstein passed similar legislation that allows online casinos to operate in the area.
