GGL, Germany's Gaming Regulator, Sets Licensing Criteria for Online Casinos

The German Gambling Authority, Gemeinsame Glücksspielbehörde der Länder (GGL), has introduced a new FAQ section on its website aimed at clarifying what defines a regulated online casino. The new section brings more clarity by defining legal terms and emphasizing the differences between online casino games and digital slot games. It also includes a list of all licensed online casinos that are currently operating in Germany.

### GGL: Online Casino vs. Virtual Slots: What’s the Difference?

The FAQ details that the term “online casino” commonly refers to virtual versions of games typically seen in gaming arcades. However, under the 2021 State Treaty on Gambling (GlüStV 2021), online casino games are specified as “virtual replicas of banker games and live broadcasts of a terrestrial banker game with the option to participate via the internet.”

Banker games usually involve popular table games like blackjack, roulette, and baccarat. In Germany, these games can only be offered with a state-specific permit and under specific conditions.

The GGL explicitly states that the term “online casino” does not include virtual slot games, as they are legally distinct. According to the GGL:
– Online casino games cover table games like roulette, blackjack, and baccarat, with licensing and regulation managed by the respective federal states.
– Virtual slot games are digital versions of slot machines typically found in arcades and restaurants, overseen by the GGL, which issues licenses and ensures compliance.

The FAQ page also provides a list where the public can view the physical locations and license issuance dates of all licensed land-based and online gambling operators.

### GGL Warns Against Illegal Platforms Posing as Legal

The authority also warns about illegal gambling websites masquerading as legal platforms. GGL notes that many offshore operators use deceptive tactics such as search engine optimization to appear in Google searches. These illegal sites often have professionally designed websites that mimic legitimate ones, featuring perks such as free bonuses or spins, and using terms like “exclusive,” “reputable,” or “top game selection.”

GGL advises consumers to verify the legality of a platform in Germany before engaging with it. They can check the legitimacy of these sites through the safelist provided on the FAQ page and consult another dedicated FAQ section identifying and addressing illegal operators.

### The Ongoing Threat of Illegal Gambling in Germany

A GGL report from last year estimated that illegal gambling revenue accounted for up to 4% of Germany’s total gross gaming revenue in 2023. It is projected that illicit operators collected between €400 million to €600 million ($453 million to $680 million). Furthermore, 2023 statistics from Nielsen Media indicated that only about 50.7% of German gamblers used licensed providers.

In response, the latest coalition government has committed to intensifying efforts against illegal gambling. This decision was announced on April 9. The German Sports Betting Association (DSWV) reacted positively to the initiative, although it described the proposed measures as somewhat vague. Nonetheless, DSWV considers it a critical move and has suggested five strategies to curb illegal gambling:
– Enhance the competitiveness of legal gambling providers.
– Set up a nationwide specialized public prosecutor’s office.
– Adopt a “follow the money” strategy.
– Hold advertising platforms and affiliate networks more accountable.
– Harmonize European regulations.

The update from GGL provides vital clarification on what is legally considered an online casino in Germany, outlining the differences and establishing regulatory standards.