Good news from Germany

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GERMAN STATE PASSES ONLINE GAMBLING LAW (Update)

Schleswig-Holstein approved licencees will be able to operate from March 2012

In passing its more liberal approach to online gambling Schleswig-Holstein has broken ranks with the other 15 German Lander despite recent talks to try and achieve a unified approach in Germany (see previous InfoPowa reports).

The passage today today (Wednesday) of the new online gambling legislation, already approved by the European Commission, follows the customary parameters applied throughout Europe such as unlimited sports betting licences and will allow licenced gambling companies to offer exchange betting, sports betting, poker and casino game services with the exclusion of baccarat, blackjack and roulette.

Additionally a 20 percent gross profit tax will be applied to operators, a somewhat more viable option than the 16.67 percent individual stakes tax being bandied about previously.

The Schleswig-Holstein law will come into force in January 2012 with approved licences valid from March 2012.

A spokesperson for online betting exchange Betfair said: “Schleswig Holstein’s new online gambling treaty is a welcome piece of legislation geared towards creating a genuinely open, transparent and responsible online gambling market in Germany.

“We are pleased that it has today passed through the State Parliament and we look forward to applying for a licence to operate there.

“We are now hopeful that the other 15 German States will make the required amendments to their proposed State Treaty, in order to bring it into line with EU law and with the law passed in Schleswig-Holstein today.

"Betfair is committed to participating in the online gambling market in Germany, ready and willing to pay taxes there and offer German consumers competitive, innovative and safe products.”

Schleswig-Holstein-based gambling firm JAXX SE, parent company of MyBet.com, confirmed it would too be applying for licencing for its subsidiaries as soon as parameters had been finalised.

Mathias Dahms, Management Board spokesman of JAXX commented: “We welcome today's decision by the state parliament in Kiel. The new gaming legislation sets the bar high for promoters and sales partners, with standards that lead the way in Europe. Only serious, economically sound companies such as JAXX SE will be in a position to meet the requirements for the licences.

“The new law provides legal certainty and strikes a fair balance between protecting players, the interests of consumers and entrepreneurial liberty."

Footnote on the German market.

Germany is Europe’s largest economy and with a population of over 80 million and an established casino culture, the country is an attractive market for providers and operators alike. It has an excellent technological infrastructure, internet penetration of 81.85 percent* and mobile phone penetration of over 100 percent**, all of which bode well for a very successful regulated online gaming market.

* Internet users, Germany: 81.85 percent (Eurostat/ITU 2010)

** Mobile cellular subscriptions, Germany: 127.04 percent (Federal Network Agency/BNetzA)