Alleged Secret Deal on Online Gambling Creates a Stir in Germany

A newly discovered deal between Germany’s states and online gambling companies has raised alarm bells among experts. They claim it undermines crucial measures to protect players. Research by Investigate Europe, Monitor, and Zeit Online shows that this arrangement weakens the safeguards set up under the Interstate Gambling Treaty. This treaty aimed to stop gambling addiction and financial ruin among players.

German Court Deal Lets Gamblers Bypass Deposit Limits, Raising Addiction Fears

Germany has put in place gambling rules that set a general monthly deposit cap of €1,000 ($1,085) for online casinos and betting sites. This rule aims to limit excessive gambling and reduce financial risks. However, players can ask for a higher limit if they can show they are financially stable. Initially, this checking process needed papers like tax forms or bank records.

Recent discoveries show that this rule has loosened a lot after a 2022 court deal between German officials and sports betting companies. This secret agreement lets gambling businesses use the Schufa G check to prove a player is stable. However, the Schufa G check does not give accurate information about a player’s income or real financial situation. Researchers showed that even people who do not earn much could raise their deposit limit to €10,000 ($10,845).

Experts caution that this legal gap might cause big problems for at-risk gamblers. Tobias Hayer, who studies gambling addiction at the University of Bremen, worries that people already prone to gambling issues would jump at the chance to raise their limits, making their financial troubles even worse, reported German media Tagesschau.

Burkhard Blienert, who oversees addiction and drug matters for the German government, slammed the deal. He claims it undoes hard-earned gambling rules just to boost company profits. He called the situation “maddening,” pointing out that gambling companies’ money seemed more important than keeping players safe.

Legal Experts Challenge German Gambling Deal, Call for Constitutional Review

Legal experts now question the agreement’s legitimacy. Constitutional law expert Christoph Degenhart thinks the deal might be in breach of German law and wants a constitutional review. Most state governments have stayed quiet about this, passing the buck to the Joint Gambling Authority of the Federal States (GGL). The GGL is checking if the Schufa G method fits with gambling protection rules.

Bremen’s Interior Minister Ulrich Mäurer has spoken out against the agreement. He says approving Schufa G goes against what the Interstate Gambling Treaty aims to do. 

On the other hand, the gambling industry disputed the accusations that the agreement was kept under wraps. The German Sports Betting Association (DSWV) highlighted that the settlement was part of a public court process and has been included in official state reports since mid-2024. 

Still, the DSWV recognizes the need for improvements. In August 2024, the association suggested stricter financial monitoring and more frequent credit checks to ensure better player protection.