What are the prospects for online gaming in Germany in the year 2025?

What are the prospects for online gaming in Germany in the year 2025?

 Two of the most important difficulties that Germany is facing right now are player claims cases and regulatory modifications. Dr. Wulf Hambach and Phillip Beumer, both of Hambach & Hambach, discuss their perspectives on these two topics.
 Germany's online gaming market
 When the Glücksspielstaatsvertrag, also known as the Interstate Treaty on Gambling, entered into force in Germany on July 1, 2021, it was hailed as a significant moment in the history of the regulation of online gambling.  The following statement was made by Daniel Hagemeier, a member of the CDU party that is in power in North Rhine-Westphalia (NRW), to emphasise the significance of this issue:

 "The Interstate Gambling Treaty and our implementation in NRW need to find a middle ground between the freedom of the states and the regulation of the gambling industry."  We must safeguard persons who have a high potential for addiction from the attractions of gambling, but we must also respect the choice of each individual to gamble if they so choose.  Our objective is not to stigmatise gambling and turn it into a marginalised activity; rather, we want to channel it.

 Despite the passage of nearly four years, this equilibrium continues to elude us.  Despite the fact that the treaty was successful in establishing a legal framework, the process of putting it into effect is plagued with difficulties.  In the year 2025, significant attention is being paid to two crucial aspects that are influencing the online gambling industry: player claims and regulatory alterations.

 The player states that they are awaiting important verdicts from the European Court of Justice
 Over the course of the past few years, the online gambling industry in Germany has been confronted with a critical problem: player requests for cancellation of charges.  It is primarily owing to the fact that large litigation funding companies are supporting such claims that courts all over the country are witnessing an increase in the number of such claims.  In spite of the fact that the vast majority of German courts uphold player claims, there are several instances in which extraordinary circumstances (including depending on the vertical) lead to the dismissal of player claims.

 It is important to note that the German Federal Court of Justice (BGH) and the Regional Court (LG) of Erfurt have both recently suspended proceedings in important cases and submitted crucial legal concerns to the European Court of Justice (ECJ).  The interpretation of EU legislation and its connection with national gambling rules for both sportsbooks and casinos/slots are the topics that are being discussed in these questions.

 No sooner than late 2025 or even 2026, the European Court of Justice (ECJ) is expected to make decisions that would most likely have far-reaching implications.  It is possible that they might either provide legal clarification that improves the arguments of operators or they could bolster the claims of thousands of players who are seeking refunds.  Due to the lack of clarity, lawsuit funding firms and gaming companies alike are facing considerable financial risks until such time as the issue is resolved.

 Following the challenging event that occurred in player claim case law, the referrals and the procedure of the European Court of Justice (ECJ) can be a source of minor optimism in the business.

 Challenges in regulatory matters: discussions in advance of the review of the Interstate Treaty
 A significant evaluation is currently being conducted on the Glücksspielstaatsvertrag, which is Germany's Interstate Treaty on Gambling. This treaty, which entered into force in July 2021, is getting closer and closer to this significant milestone.  This approach has already provoked intense disputes among regulators, lawmakers, and industry stakeholders regarding the possibility of revisions to the framework.

 The following are the primary concerns:

  Restrictions on Advertising: There is a growing gap between those who argue for advertising bans and those who push for more liberalised advertising rules. This is done to ensure that the legal market continues to be appealing in comparison to offshore providers who are not regulated.
 The restrictions, which include the stake limit of one euro per play for virtual slot machines and the necessary five-second gap between spins, are being scrutinised in order to determine whether or not they are attractive to the market.  Assuming that these measures are the "deciding reason for players to resort to the black market," even the higher administrative court of Saxony-Anhalt, which ultimately handles disputes between a large number of operators and the gambling authority, has questioned whether or not these measures make the regulated market too unattractive for players.
 In the future, the regulated market in Germany will be significantly impacted by the resolution of these arguments, which will have important ramifications.  Any failure to address the attractiveness of the legal market or any underestimation of the illegal market might potentially undermine the purposes of the pact.

 Prospects for the years 2025 and beyond
 The coming year is shaping up to be a crucial one for the online gambling industry in Germany, which is now struggling to overcome these challenges.  The lack of clarity regarding player claims will continue to be a source of concern for operators, and the regulatory disputes that surround the review of the Interstate Treaty will most likely determine the path that the market will take in the future.