In Germany GVC and Gauselmann Secure Gambling Licenses
With four historic licenses GVC is breaking ground into the German sports betting and gaming industry. Others are following suit as Germany is planning to rebuild under the State Treaty on Gambling.
The German Gambling Market: Ladbrokes and Bwin Spearhead GVC Drive
Gambling monster GVC has become one of the first gambling operators to enter the German market and obtain licenses for no fewer than four of its sports betting products, both of which are part of the State Treaty on Gambling or Glücksspielneuregulierungstaatsvertrag (GlüNeRStV), which revamped the gambling industry.
As a result, GVC's Ladbrokes, Sportingbet, Gamebookers and Bwin all the German authorities landed accreditation. Regulators have licensed Cashpoint from Tipwin and Gauselmann Group, issuing a license, and putting in motion the country's legal gambling industry.
Operators are expected to work in compliance with stringent, current rules which will restrict customers to €1,000 a month in terms of wagering cap. On a case-by-case basis, the volume can be raised up to €10,000 and would enable an operator to perform an affordability audit. Operators would still need to set a failure cap to effectively avoid players wasting more than 20% of their overall investment.
If consumers conduct improved due diligence reviews, they will also increase the monthly limit to €30,000, but the measure will apply as the pre-determined cap for each operator only to 1% of the high-value customers.
Deposit restrictions would be in effect until such time that a consumer has successfully completed the authentication procedures. Brands do not offer incentives in excess of €100 per client to plan an exciting new course for the casino industry and betting.
In addition, the steps incorporate a €1 bet ceiling on slot machines, pinning up to €70 million in earnings before interest, tax, depreciation and amortization of online casinos in the region.
How Does Industry Handle These Measures?
The business dynamics, according to GVC, would mean that group's EBITDA will plunge by up to €40 million, not taking into account the slot cap. Although this places more pressure on companies to make their products lucrative and raise performance, Shay Segev, CEO of GVC, was optimistic that the company will position itself as a market leader. It also places GVC in a heavily regulated, and most critically, highly accountable, market. Here's what Segev wanted to add:
“The much-anticipated regulation of online gaming in Germany re-enforces GVC’s position as the most globally regulated and responsible operator in our industry.”
Segev is optimistic that GVC Group will lead a market-defining experience for German customers and carry out an ambitious and unprecedented offering.
Gauselmann With Cashpoint Was The First
Markus Ettlin, Merkur Sportwetten's managing director, said he is satisfied with the current structure in the German sports betting industry which has been subject to uncertainty for years. He supported the concern shown by policymakers and authorities in making sure that Germany's restarted gaming industry will place customer security at its heart.
Founder of Gauselmann, Paul Gauselmann, voiced some disappointment that it took the company too long to enter the market but he was nonetheless satisfied with the result.
Another primary entrant, Tipwin, expressed its satisfaction that years of regulatory confusion had ended with GlüNeRStV being finalized. Tipwin noted that in 2014 the company was able to proceed again.
The company has said it supported the current State Treaty on Gambling 2021, as it gives specific guidelines and promises to take measures against non-regulating operators. Tipwin added, this is the first step towards fair and effective control of sport betting in Germany.
