Online gambling legislation

Laws Governing Online Casinos and Gambling in Germany

According to the EGBA's 'Gambling Market Revenue and Online Share by Country' report (2023), Germany is one of the largest markets for online gambling in Europe. Demand for digital gambling services has risen steadily in recent years, not least due to traditional casino and betting services increasingly shifting to the internet. However, online gambling poses particular risks: its constant availability via smartphones or computers significantly increases its addictive potential, presenting new challenges for regulatory authorities. Protecting minors from gambling is also highly relevant.

For a long time, Germany lacked a uniform legal basis for online casinos and other forms of internet gambling. Different regulations at state level created uncertainty among providers, players, and supervisory authorities. It was not until nationwide re-regulation in 2021 that a clear legal framework was created, legalising online gambling nationwide for the first time while also strictly regulating it.

This article explains which online casino law currently applies in Germany, the new rules that operators must observe, and the impact of the regulation on the gambling market.

The Online Gambling Act in Germany

The first State Treaty on Gambling, which took a restrictive approach, came into force in 2008. Online gambling, such as digital casinos, was generally prohibited. The aim was to prevent gambling addiction. This regulation applied nationwide, with one important exception:

In 2012, Schleswig-Holstein became the first federal state to introduce its own gambling law, which allowed licences to be issued for online gambling and casinos. However, these licences were only valid within the state's borders. In all other federal states, online gambling remained illegal until 2021.

This inconsistent legal situation led to a thriving grey market, with numerous international providers operating without being subject to clear German regulation.

State Treaty on Gaming 2021 (GlüStV 2021)

On 1 July 2021, the State Treaty on Gaming 2021 (GlüStV 2021) came into force. It was signed for the first time by all 16 federal states and has since formed the central legal basis for online gambling law in Germany.

The objectives of the GlüStV 2021 include:

• Preventing and combating gambling addiction

• Protecting minors

• Curbing the illegal gambling market

• Ensuring fair and transparent gaming conditions

• Guaranteeing the integrity of sport, in particular to prevent manipulation and betting fraud in sports betting

The new State Treaty also established the Joint Gambling Authority of the German States (GGL), based in Halle (Saale). It is responsible for licensing, supervision and enforcement of the legal requirements.

What has changed with the new online casino laws in Germany?

The GlüStV 2021 introduced uniform rules for online casinos, online poker, and virtual slot machines across the country for the first time. This was accompanied by a fundamental reorientation of gambling regulation.

The central idea behind the new laws is to permit legal offerings but to impose strict requirements that prioritise player and youth protection. The aim is also to strengthen legal providers and curb the black market.

The new regulations affect not only the games themselves, but also the technical, organisational, and legal requirements for operators.

New online casino rules and obligations for operators

The new online casino rules are extensive and have a profound impact on operations. Operators must meet numerous requirements in order to obtain and retain a valid German gambling licence.

Player protection and legal limits

Player protection is a key component of casino regulation. The following measures, among others, have been introduced for this purpose:

• Deposit limit of €1,000 per player per month (across all providers)

• Betting limit of €1 per spin on virtual slot machines

• Centralised blacklist for banned players

• Cross-provider limit file for monitoring deposits
  

These systems require not only reliable, centralised identification of players, but also mandatory age verification to ensure that only adults participate in gambling and to prevent multiple registrations, identity theft or attempts to circumvent the rules.

Technical and organisational requirements

In addition to the rules of the game, the Online Casino Act also places high demands on the technical infrastructure of providers:

• Operation of a so-called safe server on which relevant game data is stored

• Possibility of real-time electronic monitoring by the supervisory authority

• Implementation of a comprehensive IT security concept

• Documentation and traceability of all relevant processes

These requirements for operational governance significantly increase the technical and administrative effort involved. Internationally active providers in particular must combine regulatory requirements with effective fraud prevention and stable IT processes.

Restrictions on gaming offerings and advertising

The law also defines clear limits on what is permitted:

• Prohibition of live casino games, live betting and progressive jackpot slots

• Separation of different types of gambling on different domains

• Waiting times between game changes and payouts

• Severe restrictions on advertising, in particular a ban on influencer marketing for virtual slot games

Online casino regulation in Germany – impact on the industry

The regulation of online gambling in Germany has fundamentally changed the market. While it involves increased costs for operators, it also creates clear framework conditions and long-term legal certainty. The most important effects can be clearly compared:

Above all, the Online Casino Act in Germany means one thing for operators: if you want to be successful in the long term, you must not only comply with regulatory requirements, but also firmly integrate them into your technical and organisational processes.

Online gambling in the DACH region

Other countries in the region are also taking a regulated approach to online gambling.

Switzerland has had an open market since 2019. This is overseen by two authorities: the Federal Gaming Board (ESBK) and the Intercantonal Gaming Authority (Gespa). The basis for this is the Federal Act on Money Games. Additionally, the Swiss e-ID, as part of digital identity processes, could invigorate the regulated online environment.

In Austria, responsibility currently lies with the Ministry of Finance, although the introduction of an independent regulatory authority is planned. Regulation is more restrictive than in Germany.

Identity and age verification as a legal requirement in the Online Casino Act

One of the central pillars of the Online Casino Act in Germany is the mandatory identity and age verification of all players. The aim of this regulation is to consistently exclude minors from gambling, prevent gambling addiction and ensure compliance with cross-provider limits.

Verification must be completed before participating in gambling for the first time. Temporary or subsequent checks are not permitted. At the same time, the systems used must be designed in such a way that they prevent abuse, multiple registrations and identity fraud, for example through procedures such as video identification or automated auto-ident.

The legal requirements for identity verification include, in particular, the obligation to collect personal data and verify documents. The data includes:

• Complete recording of surname and first name

• Verification of date and place of birth

• Verification of residential address

• Recording of nationality

• Unique assignment of a player for limit and block file-related systems
  
  

As these checks are relevant across all providers, the quality and reliability of identity data plays a crucial role.

Incorrect or incomplete verifications can be considered a compliance violation and, in the worst case, can result in the withdrawal of the gambling licence.

Identity and age verification for online casinos that comply with the GlüStV

To implement the legal requirements of the Online Casino Act in Germany, operators require reliable, scalable identity and age verification solutions. Manual processes or procedures involving media discontinuity are impractical in a regulated gambling environment as they increase operational costs and impair the user experience.

Modern, automated verification solutions allow online casinos to efficiently fulfil legal obligations while ensuring a smooth digital onboarding process. High verification accuracy, short verification times, and seamless integration into existing systems are all crucial factors.

PXL Vision supports online gambling providers with GlüStV-compliant identity and age verification solutions tailored to the regulated gambling market. The browser-based, AI-supported identity check enables the fully automated verification of digital identities in seconds, helping operators comply with regulatory requirements while avoiding unnecessary obstacles for users.

Legal certainty as a success factor in online gambling

The Online Casino Act in Germany establishes clear rules for this sensitive market. While these requirements involve a significant amount of effort for operators, they also form the basis for a legal and trustworthy gambling market. Operators who consistently implement these legal requirements will not only secure their licence, but also strengthen player trust.