Rebel German province delays e-gaming law implementation

Online gambling companies eagerly anticipating the advent of new and more practical and enlightened gambling laws in the Schleswig-Holstein lander (province) of Germany will have to wait a little longer, according to media reports this week.
Our readers will recall that Schleswig-Holstein disagreed with the plans of the other 15 German lander to perpetuate, or allow only a limited change, to the present monopolised approach to gambling regulation which is in conflict with EU law and principles.
The breakaway province instead constructed its own e-gaming regulatory regime, which was EU-compliant and consequently more equitable and acceptable, offering licensing opportunities attached to strict requirements to gambling companies from other EU nations.
The European Commission has already indicated that its provisions, which include unlimited licenses and a 20 percent tax on gross profits, have its approval.
However, the new law has yet to be implemented, and judging by an announcement via the German Press Agency this week, that is unlikely to happen as quickly as potential licensees may have hoped.
The announcement declares that a decision on the issue will not be made until September 2011 “at the earliest”, and that further talks with the other German lander on the proposed new State Gambling Treaty are to be held.
If the new German Treaty is implemented in its present form, the signatories could find themselves in a confrontation with the European Commission, which has already warned that the Treaty is non-compliant with EU law.
The proposed new Treaty only allows the issue of seven new licenses, and those only for internet sports betting and carrying a massive tax burden of 16.66 percent on turnover .
The current German State Gambling Treaty expires on 1 January 2012.

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