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Baden-Württemberg became the third German state to approve the regulation of certain online casino games, following approval from politicians in Stuttgart.
In 2021, the German Interstate Treaty on Gambling came into effect, legalizing online casino gaming and sports betting in the country. It also made provisions for states to create their own regulatory framework for online casino and table games.
Baden-Württemberg follows Bavaria and Schleswig-Holstein, which utilized their treaty option to launch state-run virtual casino games in 2024. With this approval, residents can now enjoy popular games like roulette and blackjack.
“It can be assumed that otherwise people living in Baden-Württemberg will continue to play with illegal providers who do not comply with the necessary measures to protect players,” the bill states.
“Apart from the fact that they are committing a criminal offence, it will be difficult to explain why similar games can be played legally in other states but not in Baden-Württemberg.”
The bill also imposes a 15% tax on monthly online gaming revenues up to €300,000. For revenues ranging from €300,000 to €750,000, a 20% tax will apply, while a 25% tax will be imposed on any earnings exceeding €750,000.
Providing a Safe Space for German Consumers
One of the primary goals of the Interstate Treaty was to create a safe alternative for German consumers seeking to gamble outside the black market, protecting them from exploitation and enhancing overall player protection. The regulation of online casinos would also help states generate much-needed tax revenue.
The German online casino market remains one of the most heavily regulated in the world. Players are limited to a €1,000 per month deposit limit, which applies across all operators in the country. Users can increase their limit by passing a mandated credit check, but they’d have to provide sufficient personal information on income and spending capacity.
Additionally, players cannot wager more than €1 per spin on online slots and have to wait five seconds between spins. Progressive jackpot slots and live casino games are also prohibited, plus there’s the widely criticized 5% stake tax.
While the government has emphasized that these measures are in place to promote a safe gambling culture in the country and prevent harm, critics argue that the restrictions contribute to pushing high-stakes players to unregulated platforms.
The Gemeinsame Glücksspielbehörde der Länder (GGL) regulates the market and also issues licenses to operators. Licenses must be renewed every five years.
Source: iGamingBusiness
