GVC breaks ground into the German sports betting and gaming market with four landmark licenses. Others follow suit as Germany prepares to restart under the State Treaty on Gambling.
Ladbrokes and Bwin Spearhead GVC’s Push in German Gambling Market
Gambling behemoth GVC has become one of the first gambling operators to enter the German market and secure licenses for no less than four of its sports betting brands, all part of the State Treaty on Gambling or Glücksspielneuregulierungstaatsvertrag (GlüNeRStV) which has revamped the gambling industry.
As a result, GVC’s Ladbrokes, Sportingbet, Gamebookers and bwin all landed accreditation from German authorities. Regulators also approved Tipwin and Gauselmann Group’s Cashpoint, granting a license, and setting the legal gambling market in motion in the country.
All operators are obliged to operate according to strict, new guidelines that will restrict customers to €1,000 in terms of wagering limit per month. The amount may be increased up to €10,000 on case-by-case basis that require an operator to conduct an affordability check. Operators will also have to set a loss limit in place and effectively stop players from losing more than 20% of their maximum spend.
If consumers undergo enhanced due diligence checks, they may further extend that monthly limit to €30,000, but the measure would only apply to 1% of the high-value customers as the pre-determined quota for each operator.
There will be deposit limits in place until such a time that a customer has passed the verification processes successfully. Brands may not extend bonuses greater than €100 per customer, outlining an interesting new direction for the casino and betting market.
Furthermore, the measures factor a €1 betting limit on slot machines, biting into the earnings before interest, tax, depreciation and amortization of online casinos in the country by up to €70 million.
How Is Market Going to Handle These Measures?
According to GVC, the market conditions will mean that the group’s EBITDA will fall by up to €40 million, not accounting for the slot limits. Even though this puts an additional pressure on brands to make their products profitable and boost results, GVC CEO Shay Segev was confident in the group’s ability to establish itself as a market leader. It further places GVC in a highly-regulated, and more importantly – highly-responsible market. Here is what Segev had to add:
“The much-anticipated regulation of online gaming in Germany re-enforces GVC’s position as the most globally regulated and responsible operator in our industry.”
Segev is confident that GVC Group can spearhead a market-defining experience and roll out an innovative and unparalled product for German customers.
Gauselmann among the First with Cashpoint
Markus Ettlin, managing director at Merkur Sportwetten, said he is pleased with the new arrangement in the German sports betting market which has been subject to speculation for years. He welcomed the interest that lawmakers and authorities have shown in making sure that the restarted gambling industry in Germany would put consumer protection at its core.
Gauselmann founder Paul Gauselmann has expressed some regret that it had taken the company so long to penetrate the market, but he was nevertheless pleased with the outcome.
Another key entrant, Tipwin, shared its relief that years of regulatory uncertainty has come to an end with the finalization of GlüNeRStV. Tipwin noted that the company was ready to launch back in 2014.
The company also said that it welcomed the new State Treaty on Gambling 2021 as it provides clear guidance and offers to take action against operators that are not willing to regulate. “It is the first step towards a real and responsible regulation of sports betting in Germany,” Tipwin added.