Germany
76pts
Regulation 25/30
Taxation 11/20
Product 14/20
Integrity 13/15
Advertising 13/15
Market Summary
Long-awaited regulation of one of the largest markets in Europe immediately attracting licensees. However, the turnover-based tax and in-play betting product restrictions may cause consumer channelling issues hindering regulatory oversight and fiscal returns.
Channelisation:
92%
Regulatory framework
Land-based and online racing and sports betting licensed and regulated. The 20-operator licence limit set in 2012 has been abolished with an 18-month interim Treaty regime from the start of 2020, with a new Interstate Treaty set to follow from July 2021. Saxony-Anhalt will then take over from Hesse as the central licensing authority for the 16 states.
Licensing numbers & costs
An unlimited number of online betting licences have been available since the start of 2020 with already 25+ awarded under the short transitional Treaty arrangement. From mid-2021, annual licensing will cost 2%-0.6% of operator turnover. An extensive land-based market already exists, and some state landbased licence number limitations may continue.
Enforcement & player protection
Betting prohibited for under 18s. Operators must protect minors and vulnerable persons and monitor for addiction. This includes a central self-exclusion list (lasting a minimum of three months) and players setting deposit limits which may not exceed €1k per month
(exceptions may be made). AML is in place.
(exceptions may be made). AML is in place.
Betting tax & levies
Betting is taxed at 5% of turnover.
Other taxation
Federal (15%) and municipal trade taxes amount to a total of around 30-33%. 19% value added tax (VAT).
Betting channels
Land-based and online racing and sports betting licensed.
Types of betting
Fixed odds in-play betting is only allowed on the final result, next goal or similar. A list of permitted bets will be published, and bets deemed susceptible to manipulation banned. Horse race betting is licensed (Horse Race Betting and Lotteries Act) but pool betting restricted to racing associations and tracks. Non-sports bets, betting exchanges and spread betting are prohibited. Virtual bets are not regulated.
Betting integrity
Operators must be part of an integrity monitoring system and report suspicious betting to the authorities. Germany has signed but not ratified the Council of Europe sports manipulation convention and is a member of its network of national platforms.
Prosecution
The Criminal Code (Art. 265) specifically covers sports manipulation with imprisonment for up to five years.
Advertising (incl. bonuses) & sponsorship
Advertising may not be excessive or misleading nor target minors or vulnerable persons. TV advertising for betting on sports event is not permitted immediately before or during the live broadcast and must not involve active athletes. Sponsorship and advertising in sports venues is permitted in the form of brand advertising on jerseys, boards and similar media.
