Is German Market Really Liberalized?

Another criticism arrives from GVC

Even though the long-anticipated liberalization of the German monopolized gambling market seems to have arrived with the recent announcement that the 16 German states are to introduce a regime more in compliance with European norms, there is apparently still a lot to think about.

A number of companies are not satisfied with the changes, and the latest comments of such kind came from an Isle of Man-based company focused on the German market GVC Holdings. Namely, the company stated that the vote cast by the 16 states was not unanimous and that significant differences in positions could be observed between the states. Take the example of the difference between Sachsen-Anhalt, which is oriented towards a regime where online casinos may only be operated by state-owned land-based casinos, and Schleswig-Holstein, which already has a more relaxed bill that is submitted to the EU for approval, seeking to unilaterally enact its own state regime with legal force throughout Germany.

This is the reason why GVC and other online gambling groups will be applying for licensing in that jurisdiction if they are given the opportunity. In addition, GVC stated that it already operates and pays taxes under a license granted by an EU member state which enforces rigorous customer protection and anti-fraud measures.

From Jan.1, 2008, there is a monopolized Interstate Treaty in force in Germany, which expires on December 31 this year. The EU stands against such a treaty and GVC believes that the Union will occupy a similar position in regards to the proposals made by the Sachsen-Anhalt which advocates protectionism for the state-run businesses.


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