GVC Holdings is not holding back when it comes to speaking out against a new law regarding online gambling in Germany. The company is calling the law inconsistent with EU regulations and says that the restrictions will lead players to the black market. The new law in the country is set to come into effect in July 2021.
Politico.eu recently published an article that focused on GVC’s opinion of the new law. Martin Lycka, the Director of Regulatory Affairs for GVC, commented on the new law and how it is ineffective and restrictive in unnecessary ways when it comes to player protection.
Last spring, the leaders of the 16 states in Germany came to an agreement regarding a regulatory framework to reorganize the online gambling market in the country. A provision was added to online casino and sports betting service options. Based on the Third State Treaty on Gambling, only online sports betting will be allowed by next summer.
Lycka says that this framework compromises regulations between the states which focuses on how each state must include opponents of private gambling markets. The Director also pointed out that the law also has several restrictions, including those covering advertising and design of online gaming projects. These restrictions are said to be ineffective and unnecessary when it comes to player protection.
Lycka went a step further and said that instead of protecting players, the restrictions will create a counterproductive experience where players are pushed to the black market instead of towards licensed gaming providers.
The law was agreed upon by German states but it must still be approved by the European Commission. Lycka feels the new law is inconsistent with EU directives so we could see the law not receive approval once the Commission is done with its review.
In the past, the European Commission was critical of the gambling law in Germany and it is expected that this latest draft will also receive criticism.