Interwetten condemns Germany regulations as “a nightmare”
Boss Stefan Sulzbacher says the restrictions imposed under the Interstate Gaming Treaty have played into the hands of the black market and will lead to a mass exodus of big names
Interwetten’s speaker of the board, Stefan Sulzbacher, has condemned the regulations in Germany as “a nightmare for our industry” and that “50% of the 16 [state] governments have an idea” regarding regulations.
Speaking exclusively to EGR, Sulzbacher said there is a huge black market in Germany and the government has failed to take any action.
Sulzbacher also stated that Germany had created a perfect recipe for black-market operators as the regulations suit that kind of operation.
He said: “As a black-market operator, if you can have a wish for a market then the perfect place is Germany. You can have all your wishes in Germany like being Alice in Wonderland.
“There is a big black market in Germany and the German government does nothing to fight against this market. I don’t understand why they don’t because the German authorities are losing a lot of money every month,” he added.
Salzbacher likened the fight against the black market from a licensed operator’s perspective to playing an uneven football match.
“We play at an even level and the other team can play with 14 players and they don’t care what the referee says and they can do what they want,” he remarked.
As part of the Interstate Gaming Treaty, sports betting operators are limited on the in-play markets they can offer, table games are verboten and there is a deposit limit of €1,000 per-month imposed on players.
Meanwhile, online slots have a €1 stake limit per spin and a five-second delay between spins. There is also a 5.3% turnover tax on the vertical, which means operators and suppliers have been forced to slash RTP rates from 96% or more to around 90%.
Salzbacher said that it was “an absolute disaster to calculate the taxes on stakes” and argued it was “absolutely unbelievable” that the government introduced this.
Online poker also has to pay a 5.3% turnover tax, making it difficult for sites to offer the same product as other markets.
The regulated German market suffered a blow recently as Kindred Group’s flagship brand, Unibet, left the country on 1 July, although the country was small percentage of the Stockholm-listed firm’s revenue.
Sulzbacher warned that if the regulator does not take immediate action, many more could join Kindred.
He said: “We had a big, big surprise with Unibet leaving Germany, and it was unbelievable that such a big player is leaving this country. I think several small companies or maybe some bigger ones will follow them.
“This shows that the regulator has done everything possible to destroy the business of the licensed operator, which is a big support for the black market.”