Scenario of Germany’s casino industry vs Sweden’s

Content Team 2 years ago
Scenario of Germany’s casino industry vs Sweden’s

Comparing German and Swedish casino markets

Casinos without a licence are becoming more and more popular in Germany, and when a new gambling rule comes into place, it will gain more popularity. A new German Interstate Treaty on Gambling (ISTG) will come into effect from July 1st 2021. Under the new gambling regulations, a casino without a licence can’t advertise its services. Also, the operators must adhere to certain rules before getting the German license.

There are various strict measures that the German gambling laws will take to eliminate offshore casinos. It will also help in regularising the gambling space, as per German authorities. However, with the 5-second rule, German players are already attracted to casinos without a license. This was the same scenario in Sweden when the new gambling laws were enacted in 2019.

Why German players & operators like casinos without a license?

German players have strict laws that will come into being from July 2021. But, these laws seem to be doing no good to the players in terms of deposit, bonuses, etc. There are various reasons, such as higher stakes and greater bonuses, that attract a German player to a casino without a license. A few of the major reasons are listed below:

€1,000 deposit limit

deposit limitsA German player who chooses to play at any licensed German casino will be allowed to deposit only €1,000. This amount is not for the single casino that he would like to play at. Perhaps, €1,000 is set as the entire month’s amount for a player at any casino. A player who goes beyond the deposit limit of €1,000 will face certain repercussions by German authorities.

On the other hand, a casino without a license in Germany with a different license like Malta Gaming Authority doesn’t have certain deposit limits. Therefore, even if you have crossed the limit at one casino without a license, you still have the opportunity to deposit at another casino. A licensed German casino does not give this opportunity. As per, the stringent deposit limit is the primary reason behind the shift to unlicensed casinos. Also, when the Swedish gambling market faced strict regulations, the usage of unlicensed casinos surpassed two years’ data. The gambling experts are predicting the same scenario.

Higher security deposit is impossible for small-sized casinos

It is not the German player who doesn’t want to play at a German licensed casino; it is also the operator. The German authorities have set an unimaginable deposit limit for the casinos in Germany.

Under the security deposit, a casino with a small turnover is required to deposit at least €5 million. And a casino with a higher turnover is requested to deposit close to €50 million. It would be next to impossible to deposit the minimum amount for a newly launched casino or low-turnover casino. Hence, many casino operators are rethinking their decision to opt for a German license. Most of them are in the process of choosing a different license like Curacao. The list includes various established casinos.

Meanwhile, an unlicensed casino only requires the casino to separate its operating funds from the users’ funds. Most of these casinos are licensed by lenient authorities such as Curacao or MGA.

Parallel scenario of Germany & Swedish casino market

Though Swedish gambling regulations were introduced in 2019, it came up with various temporary regulations due to Covid-19. Due to strict regulations in Sweden, there was a 20% increase in unlicensed casinos users. One can’t deny that Sweden saw a spike in casinos without licenses right after the advent of new gambling regulations. Similarly, the same has been ascertained with Germany’s casino market!

Below mentioned are some similarities that Sweden and Germany’s casino industry have faced. This is the prediction for new gambling laws in Germany and a comparison with Sweden’s:

Deposit limit is pretty same

While German authorities have set the deposit limit for a month, Swedish authorities have set it for a week. However, both situations are similar where a player is restricted to a particular amount. High-rollers in both countries face enormous tussles between a casino without a license and a licensed casino. The reason behind this is the lower deposit limit which high-rollers aren’t used to. The deposit limit leads a player to choose a better option, which remains legitimate such as a no-account casino that comes without any deposit limit.

Customer details verification

A casino that gets a German license must verify the financial information and identity of the customer. This condition is put forward to ascertain the player’s capability towards the stake he would be interested in.

Similarly, when a player chooses to play at a Swedish casino, he must submit his BankID. He is also required to get his personal plus financial details verified. However, many customers do not like to disclose their financial details to any casinos, whether licensed or unlicensed.

That’s why many players choose a casino without a license where they even get the chance to play anonymously. These casinos without a license are very legitimate as they only check a little information. However, they don’t monitor every financial detail as licensed ones do.

3-second rule of Sweden & 5-second rule of Germany

Many players have predicted that both the 3-second and 5-second rule are hindrances to players’ winnings. If a person has to wait for either 3-seconds for every spin, his chances of winning over other spins will decrease.

Also, German authorities don’t allow a player to play at two online casinos parallelly. This situation is also why German players wouldn’t want to dive deeper into German licensed casinos. Instead, they would like to play at casinos without a license, and the shift can be seen by now itself. According to a survey, more than half of German players have made their accounts at many casinos without a license.

Final Take

These are the honest and transparent predictions based on various surveys and expert opinions. Of course, nobody is sure what may be the future of Germany’s gambling industry after July 1st. However, most experts agree that this regulation will bring more revenue generation to the unlicensed online casinos.

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