Legal Aspects of eSports Gambling in Germany

Overview of Gambling Regulation in Germany

As of 1 July 2021, the new Gambling State Treaty (GlüStV) is in effect. The GlüStV conclusively determines which forms of gambling are permissible in Germany, reflecting all the licensable public games of chance. This treaty is supplemented by the execution laws, casino laws, and potential gaming hall laws of the federal states, which regulate the “terrestrial” aspects of the respective gambling offers. Additionally, §§ 33c, 33d, and 33i GewO, in conjunction with the SpielV, regulate gaming devices and other games with winning opportunities at the federal level. Interestingly, even the commercial gaming hall law has relevance for gaming and eSport: the Federal Administrative Court decided in 2005 that internet cafes require a gaming hall license under § 33i GewO if the operation focuses on using the computers for gaming purposes.

The joint gambling supervision of the states in Halle (GGL) is responsible for gambling regulation under the GlüStV, and commenced its work on 1 January 2023. Until then, there was s a split responsibility: the Darmstadt Regional Council (RPDA) remained responsible for sports betting and the OASIS blocking file, while the Saxony-Anhalt State Administrative Office in Halle (LVA) primarily deals with the new topics of online slot machines and online poker, as well as the new central databases.

Licensable Games of Chance According to GlüStV

1. Lotteries with Scheduled Jackpot, §§ 22, 10 GlüStV The organization of major lotteries in Germany, such as Lotto “6 out of 49”, Keno, and Eurojackpot, remains under a state monopoly. This means that private providers are excluded from this market. However, mediation by private entities, such as Lotto24 and lottery acceptance points, is permissible.
2. Social Lotteries (§ 12 GlüStV) and Small Lotteries (§ 18 GlüStV) Social lotteries and so-called small lotteries, such as raffles for charitable purposes, are considered to have a lower risk potential by the legislator and can therefore be offered by private organizers.
3. Sports Betting (§ 21 GlüStV) and Horse Betting (§ 27 GlüStV) Only sports and horse betting are licensable under the GlüStV. All other forms of betting are prohibited by law in Germany and are therefore considered illegal gambling.
4. Virtual Slot Machines (§ 22a GlüStV) and Online Poker (§ 22b GlüStV) Since 1 July 2021, gambling providers can apply for licenses for virtual slot machines and online poker. Special requirements apply to virtual slot machines, such as a stake limit of 1 euro per game and a minimum duration of five seconds per spin.
5. Online Casino (§ 22c GlüStV, “Banker”) According to the state treaty, the federal states can decide whether they want to operate “real” online casino games as a state monopoly or grant licenses to private operators.

Other Games of Chance

There is no legal framework in Germany for new or different forms of public gambling that cannot be directly subsumed under the GlüStV.

The Permissibility of Bets on eSports Events

1. eSport = Sport? Thus, Sports Betting? The question arises whether bets on eSports events are considered sports betting and are therefore licensable under the GlüStV. Paid bets on eSports events meet the definition of gambling under German law. However, the question is whether it is a licensable game of chance.
2. Current Regulatory Practice The responsible RPDA still refuses to treat eSport bets as conventional sports bets. The RPDA still refers to the German Olympic Sports Confederation (DOSB) assessment, which rejects a general subsumption of eSport under the sports concept.

Gambling Legal Compliance

It is advisable for gambling providers to ensure contractually that they have informed their advertising partners about the obligations in their concession.

Outlook

The gambling market regulation in Germany has not been functioning for over a decade. In contrast, countries like Denmark or Malta have modern gambling laws that have long since adapted to the times. Given that Germany is reluctant for any change, only hope remains that the gambling regulation will change.