Green Party discusses revision of the GlüStV

The Interstate Treaty on Gambling (GlüStV) is the central legal instrument for regulating gambling in Germany. However, the legislation is regularly criticised by players, authorities, politicians, lawyers and industry associations. The Greens also recently addressed the issue at their annual conference at the end of June 2024. In a position paper, the party calls for some significant changes to advertising, limits, OASIS, a designated blacklist and more.

The State Treaty on Gambling (GlüStV) of 2021 aims to comprehensively and uniformly regulate the German gambling market while ensuring a high level of player protection. It is intended to make a strong contribution to ensuring that those interested in gambling primarily use clearly authorised offers. The introduction or realignment of specific licence requirements for the offline and online market is intended to create a secure, transparent environment. However, the success of these intentions is regularly called into question.

The regulations in question are a recurring theme in our reporting - and in fact, this usually involves criticism or the identification of a need for change. For example, in 2023 we conducted our own analysis of the legislation and the associated measures, which by and large revealed that the impact of the 2021 GlüStV is questionable. The first Gambling Atlas held out the prospect of changes to the GlüStV in summer 2023. At the end of 2023, a study by the University of Leipzig suggested that the canalisation mandate of the treaty would not be achieved. And just a few weeks ago, the interim report on the evaluation of the GlüStV was published, which shows in several places that adjustments are necessary.

It was precisely this interim report that prompted the Greens to discuss the GlüStV for their part. Upper Franconian state parliament member Tim Pargent and other Green politicians from the federal and state governments from the departments of home affairs, consumer, finance and health policy took a closer look at the provisions at their annual conference at the end of June. A position paper was published on the subject, in which recommendations for changes to the GlüStV can be found alongside criticism.

What exactly are the Greens calling for in their position paper?

The ‘Position paper on gambling regulation in Germany’ initially states that ‘a regulated and well-functioning gambling market and the fight against illegal offers are the basic prerequisites for strong player and youth protection’. ‘New forms of gambling, fast-moving technologies and changes in player behaviour’ would present the German gambling market with major challenges, meaning that legislation would have to adapt accordingly.

According to the paper, this can only be ensured by taking into account the following key changes to the GlüStV.

1. Advertising: It is noted that although the GlüStV formulates requirements for gambling advertising, there are still too many loopholes. The increased media presence of sports betting providers through sponsorship is criticised in particular. ‘The inadequate regulation of sponsorship has resulted in a close intermeshing of sports and gambling or betting operations’, which is extremely dangerous for young people and those at risk of addiction or suffering from addiction, according to the paper. There should therefore no longer be any exemptions. In addition, gambling advertising should no longer be permitted from 9 pm, but only from 10 pm.
2. Extended limits: The fixed deposit limit of 1,000 euros per month should be adhered to without exception. The possibility of raising the limit to up to 10,000 euros by means of a credit check would ‘de facto nullify the actual idea of player protection, especially for those at risk of addiction and addicts’.
3. Clear blacklist: The Greens recommend that not only should the legal market be transparently mapped in a whitelist, but that there should also be a corresponding blacklist for the black market. This is important so that consumers can quickly and easily recognise who really has a licence and who does not. It would then be advisable to make the ‘whitelist and blacklist better known online’.
4. OASIS: The paper recognises that the OASIS player blocking system is very popular and is often used. However, the number of third-party bans is ‘still quite low’. Furthermore, not all establishments are yet connected. The latter in particular should be completed as quickly as possible. Regular inspections by the GGL would also be useful.
5. 24-hour lockdown: The Greens recommend expanding the regulations surrounding the 24-hour lockdown. They demand that automatic exclusion should take place if the so-called panic button is pressed several times at short intervals. Automatic authorisation should then no longer be possible, but should be reviewed by the GGL on a case-by-case basis.
6. Money laundering: Cooperation between the supervisory authorities and the Financial Intelligence Unit (FIU) should be intensified and clearly regulated in the GlüStV. This is the only way to ‘effectively combat financial crime in the context of gambling and sports betting’. Among other things, this would require a greater exchange of data.
7. Evaluation: It is not enough to evaluate the GlüStV every five years because the market is developing much faster than originally thought. To ensure effective monitoring, the Greens are calling for an audit to be carried out every three years.
8. Criminal categorisation of illegal offers: As we have already reported, there is talk of abolishing Sections 284, 285 and 287 of the German Criminal Code (StGB), which would make illegal gambling an administrative offence rather than a criminal offence. The Greens are not only in favour of maintaining the classification as a criminal offence, but also of tightening it up - at least with regard to providers. The party believes that the deletion of Section 285, which would mean the decriminalisation of gamblers, makes sense.
9. Illegal slot machines: According to the position paper, there are ‘around 50,000’ illegal gaming machines in Germany. Prosecuting them is very difficult and costly, which is why law enforcement agencies and the judiciary urgently need more tools. It must be possible to act more immediately in the event of raids.
10. Catering: The mixing of catering and gambling in so-called café-casinos is a major problem. There are many bar and café operators who sometimes even set up slot machines without a licence. This is a no-go, but there should also be a clearer separation between catering and gaming establishments for player protection in general.
11. Loot boxes: As chance decides what is contained in video game loot boxes, these features have ‘clearly addictive elements’ and could be seen as an introduction to gambling, they should be banned for children and young people, according to the Greens.
12. Distance regulation: Each federal state regulates the distance that gaming arcades and betting shops must/may keep from each other, as well as from critical facilities for children and young people. In future, these distances are to be standardised and determined by the GlüStV across all federal states. This also applies to the age of access to the relevant gaming facilities. Bremen is going its own way here with a minimum age of 21.

Criticism from Deutsche Automatenwirtschaft e.V.: ‘Prohibition mandate’ would be harmful

Following the publication of the position paper and its discussion at the Green Party's annual conference, little time passed before the gambling industry intervened. The Deutsche Automatenwirtschaft e.V. took a critical stance on the demands. Although it recognises that the issue is being addressed, it also warns that the GlüStV should guide rather than prohibit, and in particular addresses the relevance of vending machines in the catering industry:

‘We welcome the fact that Green politicians from the federal and state governments are declaring war on illegal gambling. It is rightly recognised that enforcement against illegal offers must be improved. It is also right to strengthen the role of the authorities in this regard.’

But:

‘In any case, it is wrong to reinterpret the control mandate of the State Treaty on Gambling as a prohibition mandate. A complete ban on gaming machines in catering establishments is the wrong approach and would even be harmful. It is precisely the dismantling of legal devices that leads to a massive expansion of the black market. This has already been established by the Arbeitskreis gegen Spielsucht e.V. (Working Group against Gambling Addiction) from Unna on the dismantling of the 3rd machine in the catering trade. The legal catering establishments, as well as the legal gaming arcades, are urgently needed in order to be able to fulfil the canalisation mandate from the State Treaty on Gambling.’

Conclusion

Image source: https://pixabay.com/illustrations/change-arrows-clouds-heaven-948024/