Second German state treaty on gambling approved by Bundestag

Lawmakers in Germany’s Bundestag have taken the unusual step of rejecting a European Commission opinion that the country’s second State Treaty on Gambling is not viable and “unworkable,” and have advanced the legislation.

The proposal includes the controversial provision for “temporary” sports betting licenses after earlier versions capping licensing at 20 operators were strongly opposed by corporate and political interests (see previous reports).

The temporary licensing concept is to aid in the transition to a yet-to-be-decided regulatory infrastructure, hopefully by next year, as lawmakers seek a solution to Germany’s erratic and confusing path towards a sensible licensing and regulation structure.

As such, it allows betting firms the opportunity to carry on business until the long-standing matter has been resolved politically, and will therefore probably be welcomed by betting executives.

However, with national elections on the horizon this year, the politicians will have to inject an element of urgency into their deliberations before a possible changing of the guard in German politics following the voting.

There will be 35 such temporary or transitional sports betting permits, but how the European Commission reacts to the Germans spurning its opinion remains to be seen.

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