SECURITY DEPOSITS
A fresh breeze through the German online gambling market? WITH SOME OPERATORS STRUGGLING TO POST A REQUIRED €5 MILLION IN SECURITY, A NEW OPTION IS BEING EXPLORED AS KARIN BEUMER REPORTS
T he regulation of online gambling in Germany has undergone significant changes with the establishment of the Gemeinsame Glücksspielbehörde der Länder (GGL) in 2021. 1 Despite efforts to create a more uniform regulatory framework through the German Interstate Treaty on Gambling (ISTG) 2021, challenges persist, particularly concerning the stringent security deposit requirements imposed on operators by the GGL. This article examines the challenges faced by online gambling operators in meeting these requirements, including the disproportionate financial burden placed on smaller companies and the current lack of flexibility in deposit options. In response to these challenges, a novel approach is proposed, combining a third-party funds foundation with a bond insurance product to provide operators with a more cost-
effective and efficient means of fulfilling their regulatory obligations. This innovative solution aims to enhance the security of player funds while reducing the financial strain on operators and promoting regulatory compliance. A forthcoming practical case study will demonstrate the feasibility and effectiveness of this approach, providing valuable insights into its potential to address the challenges of online gambling regulation in Germany. Through collaboration between industry stakeholders and regulators, this innovative solution has the potential to pave the way for a more inclusive, sustainable and responsive regulatory framework for the German online gambling industry. Introduction
In 2021, the German Interstate Treaty on Gambling
1 Gemeinsame Glücksspielbehörde der Länder (2024). Wir regulieren den länderübergreifenden Glücksspielmarkt in Deutschland. [online] gluecksspiel-behoerde. Available at: https://www.gluecksspiel-behoerde.de/de/.
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IMGL MAGAZINE | APRIL 2024
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