Schleswig-Holstein delays egaming vote at 11th hour
Breakaway German state will not make decision on licensing and regulating egaming until September "at the earliest".
Schleswig-Holstein will decide by September “at the earliest” on whether or not to pass its egaming law, ahead of further negotiations with the other 15 German federal states or Länder over the new State Gambling Treaty.
Politicians from the northernmost German Land’s ruling CDU/FDP coalition made the announcement to the German Press Agency ahead of the regular monthly meeting of Länder ministers to be held tomorrow (18 August).
Schleswig-Holstein received the green light from the EU in May for its draft proposal to issue unlimited licences across all products based on a 20% gross profits tax, and its parliament was due to vote on whether or not to pass the law next Wednesday 24 August.
However, Schleswig-Holstein announced this afternoon that it had now delayed a decision on the issue until “September at the earliest”.
“[U]pcoming negotiations with the other states” and the EC’s opinion issued last month against a proposal backed by other 15 Länder to replace the current ban on the offer of online games of chance under the existing State Gambling Treaty with a restrictive opening for online sports betting were cited as reasons why Schleswig-Holstein had not been able to vote on its law this week.
The EC last month expressed serious doubts over the compatibility with EU law of the Länder‘s proposal to issue just seven licences for online sports betting based on a high 16.67% turnover tax. It extended the statutory three-month consultation period set aside for review of changes to Member States’ gambling laws by a further month to tomorrow (18 August) to allow the country’s 16 Länder to respond or face possible infringement proceedings.
The current State Gambling Treaty is due to expire on 1 January 2012.
Betfair and bwin.party, which in April saw a third of its share price wiped off in a week after the German Länder first put forward their proposals for the new Treaty, both declared their intention to apply for licences in Schleswig-Holstein at the earliest opportunity after its draft law gained the requisite approval from the EC in May.
Leading gambling data business H2 Gambling Capital has also projected a regulated market in Germany would only capture 7% of total egaming activity in the territory should the German Länder proceed with the restrictive opening for sports betting proposed in April.