German regulator could become “toothless tiger”

Researchers have warned the gaming regulator in Germany to be careful with new regulations in order to avoid ‘becoming a toothless tiger’.

Germany.- The Gambling Research Center at the German University of Hohenheim has said the German gambling regulator could become a “toothless tiger” when the new State Treaty on Gambling comes into force.

Chief Professor Tilman Becker says the new treaty must be fit for purpose when it comes in to force in order to properly prevent illegal gambling and protect players, especially as the market continues to develop and mature.

“There are always new forms of gambling with new technical developments,” Becker explained. “Examples would be the use of blockchain technology and artificial intelligence. Blurred lines between gaming and gambling, and the spread of internet-based affiliate marketing.”

EGBA weighs in

The European Gaming and Betting Association (EGBA) has outlined a number of recommendations aimed at improving the proposals for a Third State Treaty on gambling in Germany.

The recommendations came ahead of a stakeholder meeting organised by the North Westphalia regional government that took place in late February.

EGBA said that it welcomes progress towards developing a new online gambling regulation. However, it warned that the draft treaty proposals were inconsistent, overly restrictive in the context of current consumer demand and that they jeopardise the task of developing a fully functioning iGaming market.

“A new online gambling regulation is badly needed in Germany. However, these new proposals could make the current regulatory dysfunction even worse. An attractive product offer is absolutely essential to achieving a safe and well-channelled gambling environment. Nonetheless, the proposed restrictions would prevent this,” Maarten Haijer, Secretary General, said.