Online Casinos in Germany: Nuances and Prospects of the Sector

This European country became the fourth in terms of profitability from land-based gambling halls. At the same time, most experts associate the future of the niche with the online sector.

In this article, our Smart Money specialists will tell you what to expect from online casinos in Germany.

A Brief Detour into the History

Games for money have existed in Europe since the Middle Ages. Germany, for example, is home to the oldest operating wagering venue in the Old World. Kurhaus Casino is a protected monument of architecture and one of the main attractions of the Baden-Baden area.

This building also brought the region the title of “summer capital” because thousands of Germans came there during the summer holidays every year. Forbes magazine published the results of the research, according to which Kurhaus Casino is considered 1 of the world’s 10 best establishments of this kind.

Local niche actively developed until 1872 when the government prohibited it completely. The ban was in force until 1933 and during the world wars.

The legalisation of the industry in 1950 marks a new stage in the scaling of this niche. The second half of the 20th century is characterised by the mass construction of new venues, the appearance of slot machines, and the first clear instructions on how to open a casino in Germany.

About the Local Industry

Today, business is conducted under the rules stated in the Interstate Treaty on Gambling Law. It was adopted in 2012. The statutory act regulates wagering activities, defines the rights of players, guarantees protection against fraudulent activities, helps open new casinos in Germany, and determines the fight against illegal companies.

Characteristics of the local sector are:

• Differentiation of laws depending on the specific land. Germany is divided into 16 federal states, and the regulation of the casino sector there is slightly different. For example, in Berlin, to enter a gambling location, people must be over 18 years old. In Bavaria, it can be done only by visitors of the age of 21.
• High taxes. They eat up about 80% of the profits and are considered among the highest in Europe. The activities of brands that offer games for money annually replenish the local public treasury by more than 10.73 billion euros. To open a casino in Germany, entrepreneurs need to obtain a licence. Its cost varies depending on the region.
• Close supervision on the part of the government. It can be seen in many aspects. For example, each player needs to fill out a questionnaire at reception. This data helps operators create a profile of a new customer and identify potential lawbreakers or gambling addicts. Moreover, all employees of the establishment must receive state qualifications.

iGaming Sector: Is There a Chance to Open a Casino in Germany?

Despite the strict regulation of land-based establishments, the activities of digital platforms here are far from ideal. This type of business here is strictly prohibited and therefore remains in the grey area. In this case, the question arises: how to open a casino in Germany?

Schleswig-Holstein is the only place where digital platforms are considered legal. Those entrepreneurs who managed to obtain a licence 10 years ago can work there. A total of 47 permits were issued in 2012, and the validity period of most of them ends in 2024.

Until that time, the government promised to legalise the niche, given the increased pressure from the Council of the European Union.

The fact is that Germany remains the only EU country whose legislative framework does not meet the requirements of EU legal acts in terms of the casino industry. All this makes it impossible to have an influx of foreign investors who want to put their money in a promising market and launch a gaming site.

The ban forces Germans to visit foreign online platforms. These are solutions from major suppliers. Most of them operate in the European market based on an international licence. They accept bets in dollars and euros, help users withdraw cash winnings, provide quick registration, and give many other preferences.

The Launch of a Local Digital Casino: Prospects

Most experts agree that the process of legalising online entertainment in the country will begin soon.

There are 2 reasons:

1. Firstly, this is what the EU requires. The organisation is threatening to impose sanctions if the gambling regulation is not brought to general standards.
2. Secondly, the legalisation of online casinos in Germany is beneficial primarily for the region. Every year, the state treasury loses about 960 million euros in taxes due to the shadow internet market. These funds, for example, can be spent on the development of many infrastructure projects.

Despite some restrictions, online casinos in Germany remain attractive enough for investors.

There are several reasons for it:

• a decent level of income of the population, which allows users to place big bets;
• the huge demand for iGaming solutions among the local population;
• global trends towards an increase in the share of internet products in the structure of the industry.

So far, the market remains uncharted, which offers future investors really good prospects.

How to Open a Casino in Germany?

The procedure consists of several important stages:

1. Registration of a legal entity, forming the company’s account, and acquisition of a licence. This issue should be considered as a whole, given that each subsequent item follows from the previous one. In the context of the online casino market in Germany, it is recommended to get ready for the purchase of an international permit. It is also worth registering enterprises in the territories with a special legal and tax status.
2. Acquisition of software. This is a solution with a clear interface, a multilingual panel, and a well-thought-out system for the deposition and withdrawal of funds. Programs must provide high reliability, accuracy, and security of the gameplay, so it is better to turn to trusted vendors with impeccable reputations. One such provider is Smart Money.
3. Registration of the domain name and acquisition of hosting. In the case of the described market, so far, business owners need to work only in the .com domain zone.
4. Selection and acquisition of iGaming solutions. A web platform should offer such traditional entertainment as roulette, blackjack, several types of poker, etc. To increase traffic, it is also worth adding a few unique slot machines.

Taking into account the specifics of the local industry, as well as the high cost of entering this market, it would be a good decision to buy a turnkey web casino. This approach suits both beginners and experienced operators.

The Main Things about Starting an iGaming Project in the Region

The Smart Money studio can help you open a casino in Germany and do it quickly, legally, and inexpensively. We specialise in the launching of both land-based and online locations.

Our team also offers clients a unique option: the acquisition of a turnkey web platform. Such a decision reduces the costs of entrepreneurs by more than 3 times.

From us, you can order a wide range of services. Thus, it is possible to buy high-quality software or become a member of a profitable affiliate program. Moreover, we provide our customers with legal support and help them with the acquisition of licences and training staff.

Being the official distributor of the world’s leading developers, Smart Money will fill up your gaming site with original and high-quality video slots.

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