The European Commission has called into doubt plans to liberalize sports betting in Germany. However, the German betting operators do not plan to give up.

 It was learned that the European Commission (EC) has published an official letter expressing its position on the plans of Germany to start the licensing process betting operators in January 2020. In an address EC expressed doubt whether to allow the third state treaty on gambling to reduce the volume of shadow operations segment.

 In March, the 16 German states agreed and approved the new contract, which determines the fate of the sports betting industry for the near future. According to the agreement, the operators licensed in the current year, will be able to provide services to 30 June 2021. It is expected that by this time the states will be able to develop a more fundamental agreement.

 However, the European Commission expressed the view that the 18-month window, the anticipated time of licensing, even with the possibility of extension of permits for three years, is not enough.

 The promise of the EC is that the conditions stipulated by the state contract, may not be sufficiently attractive to operators. Especially for those who continue to work in the shade and provide services to online casinos. Moreover, if the states fail to reach a fundamental agreement, a temporary contract can regulate the industry more than planned.

 The letter sent by the German authorities – a precautionary step the EC, which suggests that the agency considers acceptance of the contract invalid. The next step could be a formal hearing on the violation.

 Earlier, the EC has already foiled an attempt to establish a regulatory regime. The stumbling block was the fact that in Germany, wanted to limit the number of licenses for sports betting operators.

 However, there are not too concerned about the indignation of the EC. The representative of the State Chancellery of North Rhine-Westphalia, said that the EC comments do not contain items that could affect the change in the content of the State Treaty.

 Operators are also not happy with the measures taken by the authorities, and it’s not just the validity of licenses or ban online casinos. In addition to these problems, the document assumes that the limit on gambling-spending of € 1 thousand. And a tax on the turnover in the amount of 5%.

 Recall that one of the German states introduced a ban on transactions in favor of offshore operators.

 See also: Is gambling in Germany legally?

 See also: Control of gambling in the EU (Part 2)

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