Term and meaning of the State Treaty on Gambling
Der State Treaty on Gambling (GlüStV) is a multilateral agreement between the German federal states that aims to establish the fundamental legal regulation of gambling in Germany. Its goal is to create binding framework conditions for the organization, brokering, and distribution of games of chance. The State Treaty on Gambling sets out aspects such as licensing, supervision, and sanctions for gambling activities, and contains numerous provisions regarding player and youth protection as well as the prevention of gambling addiction, fraud, and other criminal activities related to gambling.
Historical development of the State Treaty on Gambling
State Treaty on Gambling 2008 (GlüStV 2008)
The first State Treaty on Gambling came into force on January 1, 2008. It constituted the first comprehensive harmonization of gambling law in Germany. The main objectives were to limit the range of available gambling, protect players from the dangers of addiction, and safeguard minors. The original regulations particularly resulted in a monopoly for state lotteries and significantly restricted private operators.
State Treaty on Gambling 2012 and statutory transition phase
Due to decisions of the European Court of Justice (ECJ), which especially criticized the German lottery monopoly, the State Treaty on Gambling was revised several times. In 2012, a revised version came into force, which provided for pilot projects for private sports betting, but did not yet bring about a comprehensive opening of the online market. This led to a period of legal uncertainty, as some federal states—especially Schleswig-Holstein—adopted divergent regulations.
State Treaty on Gambling 2021 (GlüStV 2021)
On July 1, 2021, the third State Treaty on Gambling, the GlüStV 2021, came into force. This is the currently valid version and brings about far-reaching liberalization: For the first time, online gambling (such as virtual slot machines and online poker) was permitted nationwide, subject to strict requirements.
Objectives and principles of the State Treaty on Gambling
Overarching objectives
The provisions of the State Treaty on Gambling are guided by clearly defined social and legal objectives, which are explicitly listed in § 1 GlüStV:
- Prevention of gambling addiction and betting addiction: Through close supervision and prevention, excessive gambling risks are to be effectively contained.
- Limitation of the gambling offering: The availability of gambling opportunities is to be kept at a level acceptable to society.
- Safeguarding youth and player protection: Minors and particularly vulnerable individuals must be comprehensively protected.
- Prevention and combatting of fraudulent and criminal activities related to gambling.
- Channeling gambling impulses: Citizens are to be steered toward legal and supervised gambling offers in order to reduce the black market.
- Ensuring integrity, transparency, and fairness in the gambling offered.
Scope and definitions
The provisions of the State Treaty on Gambling cover all publicly offered gambling that fall under the Definition of gambling according to § 3 GlüStV. Gambling within the meaning of the State Treaty is any game where, for a fee, there is a chance of winning and whose outcome depends entirely or predominantly on chance. The following are particularly covered:
- Lotteries and raffles
- Sports betting
- Horse race betting
- Casino and slot machine games
- Online gambling, including virtual slot machines and online poker
Licensing, permits, and licensing procedures
Requirement for a permit
All organizers and brokers of games of chance require an official permit according to § 4 GlüStV. The permit requirement serves to ensure public safety and order as well as participant protection. The competent state authorities are responsible for issuing these permits.
Permitting procedure
The procedure for issuing permits is strictly regulated and in particular examines:
- Personal and economic reliability of the applicant companies
- Proof of compliance with player and youth protection measures
- Implementation of technical and organizational measures for addiction prevention
- Ensuring data protection-compliant processing procedures
- Submission of a social concept
- Compliance with tax regulations
Licensing for online gambling
For online gambling, a special official permit is required. The State Treaty on Gambling sets additional prerequisites for these offers, such as stakes and loss limits, prohibition of simultaneous play, and advertising restrictions.
Control, monitoring, and supervision
The monitoring of compliance with the provisions is the responsibility of the Joint Gambling Authority of the Federal States (GGL) based in Halle (Saale). This authority ensures the central registration, review, and, if necessary, sanctioning of licensed providers and penalizes violations of regulatory requirements.
Measures for player and youth protection
Prevention of gambling addiction and addiction
To achieve the protection of particularly vulnerable groups, the State Treaty on Gambling contains numerous requirements:
- Mandatory customer registration and identity verification
- Central exclusion database (OASIS): Players can exclude themselves or be excluded if there are indications of addictive behavior
- Stake limits, loss limits, and compulsory breaks
- Ban on impermissible advertising formats, especially with regard to minors
Measures for the prevention of money laundering and fraud
Gambling providers must demonstrate that they have implemented measures in accordance with the Anti-Money Laundering Act (GwG). This includes monitoring deposits and withdrawals as well as mechanisms to prevent manipulation and attempted fraud.
Sanctions and legal consequences in the event of violations
Violations of the provisions of the State Treaty on Gambling can result in administrative and criminal consequences. Sanction measures include, among others:
- Revocation of the permit and prohibition of business operations
- Fines
- Initiation of criminal proceedings
- Blocking illegal online offerings (website blocking)
State Treaty on Gambling and European law
The State Treaty on Gambling must comply with European law, particularly the freedom to provide services under Art. 56 TFEU. Several amendments were made in response to directives and judgments of the European Court of Justice, which questioned restrictions and monopolies in certain types of gambling. Therefore, German gambling regulation must always be structured in such a way that it does not violate higher-ranking EU standards, especially with respect to bans on discrimination and requirements for transparency.
Outlook and need for reform
The gambling market is constantly evolving, especially due to technological innovations in the online sector. The legislator takes new challenges into account through regular evaluations and possible amendments to the State Treaty on Gambling. The effectiveness of regulation, particularly for protection against gambling addiction and curbing the black market, continues to be a matter of societal and political debate.
Summary: The State Treaty on Gambling is the central legal instrument for regulating gambling in Germany. It sets binding framework conditions for the gambling market, regulates licensing, supervision, sanctions, and protective measures, and ensures a balance between the interests of providers, participants, and the state through appropriate administrative structures and protective measures. Compliance with these provisions ensures a controlled and responsible offering of gambling, as well as comprehensive protection against gambling addiction, fraud, and other associated risks.
Frequently asked questions
What role does the Joint Gambling Authority of the Federal States (GGL) play within the framework of the State Treaty on Gambling?
The Joint Gambling Authority of the Federal States (GGL) has served as the central supervisory and enforcement authority for the entire territory of the Federal Republic of Germany within the framework of the State Treaty on Gambling (GlüStV 2021) since July 2021. Its main tasks include granting and overseeing licenses for private gambling operators, combatting illegal gambling, implementing technical and administrative requirements of the law, as well as managing exclusion databases for gambling addiction prevention. The GGL accepts reports of violations, conducts procedures to block illegal online offerings (e.g., IP blocking and payment blocking), monitors the proper introduction and use of technical systems to prevent manipulation and money laundering, and enforces youth and player protection measures. Its activities cover all types of gambling regulated at the federal level, with the exception of terrestrial slot machine gambling, which remains the responsibility of the federal states. The GGL is authorized to issue orders and impose fines for violations of the GlüStV.
What is the legal framework for permitted online gambling according to the State Treaty on Gambling?
The GlüStV 2021 for the first time permits various types of online gambling nationwide, including virtual slot games, online poker, and sports betting, provided they are covered by an appropriate nationwide permit. The issuing of these licenses is subject to strict regulatory requirements. Among other things, there are prescribed deposit and stake limits (monthly €1,000 per player, with exceptions under certain conditions), addiction prevention measures, player exclusion systems (OASIS), identification procedures for age verification, and technical measures to ensure fairness and protection from manipulation. Additionally, gambling advertising may only be carried out in a restricted manner and under certain conditions, for example, with an explicit warning about the dangers of addiction and exclusion of minors. Without a license issued by the GGL, offering, brokering, or organizing online gambling remains punishable (§ 284 StGB).
What legal requirements must gambling providers meet according to the State Treaty on Gambling?
Gambling providers must meet comprehensive requirements to obtain and maintain permission to operate their services. Key requirements include: the operator’s financial capability and reliability, proof of exclusion of criminal influences (such as anti-money laundering), technical safeguards for player protection (such as stake limits, panic button, session limits), participation in the central player exclusion system (OASIS), compliance with youth and data protection rules, ensuring transparency about odds of winning and game rules, and legally compliant advertising. Violations of these requirements can lead to revocation of permission, fines, or criminal prosecution.
How does the State Treaty on Gambling regulate addiction prevention and player protection?
The State Treaty on Gambling prescribes a comprehensive framework for addiction prevention and player protection. Central elements include the nationwide player exclusion system OASIS, into which players can be entered voluntarily or at the request of third parties (e.g., family members or operators in case of problematic gambling behavior); during the exclusion period, comprehensive participation in all legal forms of gambling is prohibited. In addition, monthly deposit limits apply, which are compared across all of a player’s services, mandatory information regarding the risks of gambling, and requirements for identity and age verification. Game processes and playing times are monitored and documented to recognize patterns indicative of addiction at an early stage. Providers are subject to ongoing monitoring by the GGL regarding compliance with these requirements and must regularly train their staff in player protection and addiction prevention.
To what extent does the State Treaty on Gambling provide for a ban on advertising or advertising restrictions for gambling offers?
The GlüStV 2021 contains detailed regulations concerning advertising for gambling offers. Advertising is generally permitted but must comply with strict statutory requirements. Gambling advertising may not target minors or excluded players and must always reference the addiction risks of gambling. Particular restrictions apply to the times and channels for advertising certain games, such as a ban on advertising for virtual slot games and online poker on broadcast media and online between 6 a.m. and 9 p.m. Furthermore, advertising must not be misleading, must not make false promises of winnings, and must not downplay addiction risks or encourage excessive gambling. Sponsorship in professional sports is also regulated, particularly to protect minors.
What legal consequences may result from violations of the State Treaty on Gambling?
Violations of the provisions of the State Treaty on Gambling can have significant legal consequences for gambling operators as well as intermediaries, payment service providers, or advertisers. These include regulatory measures such as prohibitions, orders to block websites or payment flows, and substantial fines that may be imposed by the GGL. Serious violations can be prosecuted under criminal law, for example pursuant to Section 284 of the German Criminal Code (“Unauthorized organization of gambling”). In the case of illegal online offers, access to websites can be blocked and payment processing disrupted. Providers who repeatedly or seriously violate the rules risk permanent exclusion from the German gambling market.
How are foreign gambling operators treated under the State Treaty on Gambling?
Foreign gambling operators who wish to offer their services in the German market are also subject to the provisions of the GlüStV 2021. They are required to obtain permission from the GGL, regardless of whether they hold a license in another EU country. This serves to protect and enforce the law within Germany. Providers without a German license are considered illegal, their offerings are not permitted in Germany, and they are actively pursued – including through the use of blocking technologies and measures against payment service providers. There are no privileges for EU providers; the same requirements apply as for domestic operators, and the country-of-origin principle is explicitly not applied. A violation can lead to the initiation of both regulatory and criminal proceedings in Germany.
