"Unleashing a Political Revolution: Could Germany's Future Be Shaped by Groundbreaking Regulatory Reforms?"

As Germany approaches snap elections on 23 February, the nation is undergoing significant changes. Recently, the country has faced numerous challenges, including a sluggish economy and the collapse of its preceding coalition government.

In the gambling industry, there is a sense of stagnation. Since market regulations began in 2021, licensed operators have grappled with strict regulations and a growing black market. Attempts to amend the Interstate Treaty on Gambling have been fruitless, and the industry has struggled to highlight the extent of the channelization issue within Germany.

With the potential for a new government to emerge after the elections, there is hope that this year could herald a new era for the German gambling market. Some signs indicate progress, but patience may still be required.

**Changes to the Interstate Treaty and industry concerns**

An interim review of the Interstate Treaty on Gambling began in December 2023. This review aimed to evaluate the effectiveness of existing regulations and offer improvement recommendations. However, the industry does not expect dramatic changes. Skeptics argue that because the evaluation was conducted by an industry critic, fairness is a concern.

**Proposed amendments and their impact**

Industry stakeholders expected cosmetic changes from the evaluation. Changes include a potential amendment to IP blocking and tidying up the cumbersome process of approving new online slot games. Currently, game approvals are done on a game-by-game basis, which could shift to supplier-level approvals in the future.

**Reevaluating casino restrictions**

The evaluation did not specifically address easing product restrictions, but there is potential to reconsider the current limits on online slots, including stake and deposit limits. Changes in these areas remain uncertain but could be addressed by relevant authorities.

**Regional variations in online casino regulations**

The inconsistent regulations on table games have frustrated the industry. Only a few states have regulated these games, but North Rhine-Westphalia might open the market further. Despite this, operators continue to push for national licensing to create uniform regulations.

**Expanding the sports betting market**

The industry has broadened its product offerings, and there is optimism for further expansion. However, political opposition, particularly regarding betting on amateur sports, continues to challenge betting operators.

**Challenges with political opposition**

Political resistance based on ideological stances of certain states remains a challenge. States like Bremen have often presented hurdles for the industry. Despite openness from the GGL to changes, political backing is required for significant reform.

**The need for constitutional changes**

Reforming gambling laws remains difficult due to political opposition, especially from states with Social Democratic leadership. Substantial changes necessitate a two-thirds majority, a challenging goal.

**Federal elections and potential impact on gambling**

A change in government after the February elections is predicted, with the pro-business CDU and CSU potentially taking the lead. Nonetheless, gambling policies are state-controlled, limiting the federal government’s influence over this sector.

**Court rulings and future discussions**

A recent court ruling condemned the current stake tax system, highlighting its failure and calling for reconsideration. Although immediate changes are unlikely, this could initiate new political discussions.

**Optimism for long-term changes**

While sweeping reforms may not happen soon, stakeholders look to 2027 for more extensive changes to the Interstate Treaty. The recent court ruling is seen as a victory that might influence future evaluations and recommendations, offering hope for the industry in Germany.