Sportingbet has become the latest major European operator to receive an online sports betting licence from the German federal state of Schleswig-Holstein.
The two other recipients of new six-year licences were Primebet International, the sportsbook subsidiary of Vienna-headquartered Betbull Holdings, and OnGoingMedia GmbH.
Betbull Holding MD and founder Alexander Leip said in a press statement that passing the “comprehensive and detailed” process in SH had been a “perfect test run for the currently pending application for one of the 20 sports betting licences of the 15 federal states under the State Gambling Treaty, which closes on 21 January.”
Leip added that: “When I compare the two catalogues of requirements, I cannot imagine that companies that have survived the test methods in Kiel could not positively fulfil the stringent requirements of the tender of the other 15 states.”
Schleswig Holstein, which for the first time did not press release the issue of new licences under its Gambling Act, has now issued 18 licences for online sports betting and 12 for online casino (including poker) since passage of the law last year. Sportingbet joins other major brands 888, Betfair, Ladbrokes, PokerStars, bet365 and bwin.party in holding a licence from Germany’s northernmost Land.
The SPD-Green-SSW ruling coalition that came to power in last year elections has however declared its intent to proceed with repealing the Gambling Act passed by its predecessor and join the other 15 German states in the federal sports betting treaty, despite such a move exposing Germany to possible infringement proceedings by the European Commission.
The national sports betting-only Treaty provides for the issue of just 20 licences, taxed at 5% of stakes, with a blanket ban on online casino and poker, despite SH already having issued 12 licences for this activity under the Gambling Act it is currently trying to repeal.
The EC raised doubts over the compliance of the draft with European law, given its proposed switch from an open and transparent licensing regime to a restrictive and opaque one within just 12 months. The EC also criticised the lack of coherency in German gambling law represented by having two parallel regulatory frameworks within Germany.
While the EC standstill period expired on 7 January 2013 following a month’s extension prompted by itself and Malta issuing detailed opinions against the new regulations, meaning Schleswig-Holstein could therefore adopt the measures, an EC spokesperson told Casino Choice that:
“The conclusion of the procedure under Directive 98/34/EC is without prejudice to any possible legal steps that the Commission might decide to take in the future regarding the same measure, once adopted.”
SH’s next hearing on the legislation is scheduled for 23-25 January. Opposition budget expert Tobias Koch accused the government of “playing Russian roulette” with the EC by seeking to push the legislation through parliament.
SH has not been able to collect taxes on online sports bets since 1 July when the ITG came into force, due to a clause in its own Gambling Act.
Article written by Stephen Carter
