86 operators "express interest" in Schleswig-Holstein
Huge number of potential applicants and severe shortage of manpower likely to lead to opening being delayed - SH Parliament rejects oppositin repeal bill.
A total of 86 operators have expressed an interest in applying for a licence in Schleswig Holstein as the breakaway German state presses ahead with plans to open the application process on 1 March.
Several media reports have suggested that 86 companies have applied for a licence, however eGaming Review has learned this has so far only been in the form of expressions of interest from operators including PokerStars, bwin.party and local company Jaxx.
There are only seven days left before the country’s northernmost state opens its doors, however several sources close to the matter have told eGR that due to the huge number of potential applicants and a severe shortage of manpower to process each one, the opening is likely to be delayed.
“This afternoon, the Schleswig-Holstein Parliament rejected a bill put forward by the opposition SPD party seeking to repeal the state’s online gambling act.
In May last year the European Commission ruled Schleswig-Holstein’s draft gambling law as compliant with EU law, giving the state the green light to pass a bill and the licensing process to begin. The news was welcomed by a number of large operators that have significant market share there with bwin.party’s co-chief executive Norbert Teufelberger telling eGR last April the company would apply for a licence. bwin.party generates more than 25% of its revenues from German customers.
At the time a Betfair spokesman called the Commission’s approval a “decisive step” telling eGR that it would apply for a licence if and when the bill was passed.
The German state will install a 20% gross profits tax, allow all products, an unlimited amount of licences and implement strict consumer player protection.
Meanwhile, the future of the federal interstate treaty agreed by the remaining 15 Länder hangs in the balance with the EC due to gives its verdict on the second draft bill imminently. Sources eGR spoke to varied in opinion on how strongly the EC’s response could be to proposals that have been described by operators as “unworkable”.
The treaty limits the number of sports betting licences to 20 with a turnover tax of 5% and offers no other products.
The first draft proposal, based on a 16.66% turnover tax, was announced last April with bwin.party’s share price falling 16% as a result.
To grant licences the Schleswig-Holstein government needs to resolve four elements. It has already outlined the basic application and licensing procedures, however documentation on the technical requirements needed to gain a licence have been submitted to the EC in Brussels, while information on statutory fees for each application, and a decision on which of the local authorities will deal with applications has yet to be decided according to a local legal source.