An upcoming update to Germany’s Interstate Treaty on Gambling is poised to address critical regulatory challenges, including persistent confusion surrounding deposit limits, online slot stake limits, and the controversial issue of IP blocking. These potential changes were central to a recent webinar discussion featuring legal experts and industry bodies, highlighting a determined effort to refine the country’s gambling framework.

During a webinar focused on Germany’s Interstate Treaty on Gambling update, Simon Priglinger-Simader, Vice President of DOCV (Deutscher Online Casinoverband), indicated that the Gemeinsame Glücksspielbehörde der Länder (GGL) could amend existing rules concerning deposit and online slot stake limits. An interim evaluation of the Interstate Treaty, launched in December 2023, has been assessing the effectiveness of current regulations and aims to make recommendations for improvements, some of which are likely to be adopted by the federal states when they amend the law later this year.

Treaty Update to Address Affordability Confusion

A significant source of friction in the current regulatory landscape is the considerable confusion surrounding the regulator’s definition of affordability, particularly in relation to online slots stake limits and sector-wide deposit limits. As enforced by the 2021 Interstate Treaty on Gambling, a maximum stake limit of €1 per spin is in place for online slots, alongside industry-wide deposit limits. Players are also capped at a €1,000 monthly deposit across all regulated platforms, with Germany’s LUGAS monitoring system tracking these limits nationally.

Both of these measures are widely viewed by the licensed sector as preventing it from providing a competitive offer against black market operators, a concern that is now being reconsidered by the GGL as part of its regulatory evaluation. Priglinger-Simader stated, as reported by iGaming Times, that current guidelines will not be applicable from next year (2026), and therefore an update is expected before 2026. He conveyed, as reported by iGaming Times, that the aim is to establish a sustainable model that provides a long-term plan and security for operators. He noted that the latest update from the supervisory board meeting in May indicated that the states are now actively looking to find a clear definition for the term affordability.

Michelle Hembury, a local lawyer at Melchers Law, observed that increased lobbying efforts from the industry had reportedly led the GGL to move away from deposit limits being solely attached to the individual stake of each player. Hembury noted, as reported by iGaming Times, that “Pressing questions, namely, ‘What does the regulator expect for those affordability checks?’ have become more virulent now, as we’re looking yet again at an expiry date [for the current rules].” A working group was formed this year to discuss these critical affordability questions, with clarification expected around Q3 or Q4. Hembury believes, as reported by iGaming Times, that the GGL could include a concrete definition of what “economic capacity” (affordability) means in its Interstate Treaty update. She stated, as reported by iGaming Times, that the term is used within the regulations as a requirement for a player requesting a deposit limit increase, but has not been defined in any regulatory document. Hembury personally expressed hope for a definition that is specific enough yet leaves sufficient “wiggle room” for practical implementation that genuinely works for both the industry and individual operators, emphasizing the need for practical feasibility.

Addressing Online Slots Stake Limits

Similarly, the question of online slots stake limits is on the agenda. Priglinger-Simader informed webinar viewers that the GGL’s administrative board aimed to tackle the question of operators applying for increased slots stakes in its next meeting, scheduled for September or October. He stated, as reported by iGaming Times, that “This is something we definitely want to get solved before 2026.” However, he added, as reported by iGaming Times, that the GGL has indicated multiple times that they “cannot decide, or don’t want to decide on their own,” as it is a matter for the administrative board to discuss and find a final decision for. Hembury acknowledged that the GGL’s position on this issue had reportedly changed in recent months, with the regulator now advocating for a more competitive solution for the licensed market. One solution she suggested is allowing individual operators to apply to increase their stake per spin allowance, believing this could highlight the proper necessity for the administrative board to discuss and prioritise these pressing matters.

IP Blocking Struggles

Finally, the webinar panel also addressed the contentious issue of IP blocking as a measure to curb the black market. Last year (2024), an administrative court in Germany ruled that there was no legal basis for the GGL to enforce IP blocking based on current regulations. However, Hembury believes, as reported by iGaming Times, that the GGL will implement new regulation into the updated Interstate Treaty to avoid future legal impediments to this measure. She assumed, as reported by iGaming Times, that the GGL will have to collaborate closely with the Administrative Board and all representatives of the federal states to amend the Interstate Treaty. Hembury expressed anticipation for this development, as she stated, as reported by iGaming Times, that it “will be the first proper change of the Interstate Treaty since it was instated in 2021.”

The upcoming update to Germany’s Interstate Treaty on Gambling is poised to be a significant evolution in the country’s regulatory framework, aiming to resolve key struggles related to affordability, stake limits, and IP blocking, with the ultimate goal of fostering a more sustainable and competitive regulated market.