DSWV welcomes upcoming German ministers meeting

Germany’s stalled online gambling process is expected to be on the agenda when Germany’s 16 Minister-Presidents meet later this week.

The Minister-Presidents are expected to consider whether the State Treaty on Gaming requires fundamental reform or whether it can be rescued by implementing minimal changes.

Five points up for discussion contained within a proposal submitted by the State of Hessen in October 2015 include sports betting license awards limited to qualitative assessments rather than a quota system and the formation of a Federal gambling authority.

German States Bavaria, North Rhine-Westphalia and Lower Saxony have weighed in with their own proposals which provide minimal changes to existing legislation but push towards a more transparent process.

German Sportsbetting Industry Association president (DSWV), Matthias Dahms, said: “The Gordian knot can only be resolved when the Treaty is fundamentally reformed,” pointing out that continuing with a quota system or granting of provisional licenses would leave the country in violation of European Union law which may result in the blocking of a licensing process for years to come.

Dahms urged the Group to follow a thorough process rather than looking for a quick solution to the current impasse saying: “It does not help to glue a small bandage on a large wound.”

According to DSWV, the Federal Ministry of Finance estimated a loss of cash tax revenue in 2015, directly attributed to the stalled process, to have grown around 7 percent to Euro 240 million based on 5 percent of all wagers totalling Euro 4.8 billion.

“These figures do not yet include wagers derived from the black market in Germany, which we estimate would add a further Euro 1.5 to 2 billion,” Dahms revealed.

In related news, the DSWV signed up another four members this past week comprising bwin Austria, Interwetten, Sky Betting and Gaming and Tipwin.