GVC Holdings has welcomed the introduction of the transitional period tolerance policy in Germany following the agreement from the German federal states on September 10.
Earlier this month, 16 Länder (German federal states) confirmed that it had approved a transitional tolerance policy for the period ahead of the implementation of the Interstate Treaty 2021 which were published today.
The introduction of the policy will effectively bring forward and implement, in large, many parts of the Treaty which GVC states provides ‘clarity and certainty’ in the German market.
Shay Segev, CEO of GVC, commented: “The introduction of the Interstate Treaty and Tolerance Policy brings long-awaited clarity to the future of online gaming regulation in Germany. This development is to be welcomed, as is the greater certainty and detail it provides on operating under the new licencing regime.
“The establishment of a level playing field for responsible, licenced operators is ultimately good for German consumers, the group and the industry as a whole. It also re-enforces our position as the most globally regulated and responsible operator in our industry.
“We look forward to building on our market leading offer in Germany and providing our customers with the very best gaming experiences under the new regulatory framework.”
From October 15 of this year, key elements of the Tolerance Policy that will come into effect includes:
- Switching off all casino table games (eg blackjack & roulette), until the individual states choose to issue licences under the treaty.
- Deposit limits across poker and slot gaming of €1,000 per month. There may be the ability for these limits to be raised once full licences have been issued.
- Certain responsible gaming enhancements such as prescribed verification of customer processes and cooling off periods.
- All poker and slot games must be offered in the German language.
- Restrictions on parallel play on slots and autospins.
- Restrictions on advertising of poker and slots games.
- Some limited restrictions on sports betting in-play markets.
The following elements will come into effect from December 15, 2020:
- €1 max stake per spin on slot games
- 5 second minimum duration of a slot spin
The overall impact of the Tolerance Policy is said to reduce revenue across the German market. With the policy coming into effect through the balance of 2020, GVC estimates that the impact will not materially change EBITDA expectations for the group for the current financial year. For 2021 GVC estimates that group EBITDA will be reduced by approximately £70m.
GVC states that in complying with the policy, the company will be ‘well placed’ for the issuance of sports betting and gaming licences under the treaty which is expected to come into force on July 1, 2021.