Research has found that the protection measures on draconian players could cause over 40 percent of them to move to the black market. This was revealed in a study carried out to find out the possible consequences of the new Treaty in the German State. The study by the Handelsblatt Research institute included a survey of two thousand private individuals and was commissioned by a trade association in the internet industry, Eco.
Statement from The Handelsblatt Research Institute President
Speaking on the study, Professor Bert Rurup, The Handelsblatt Research Institute President stated that:
The data from the study revealed that most of the online casino players reacted strongly to changes made to gaming conditions. He further explained the implication of the above result, stating that if the playing conditions on the online casino site where players have been playing for a long while changes, over 40% of players in online casinos will look for an offer in other places where the playing conditions are still good if playing conditions.
For instance, the changes could be in form of slower playing speeds, lower betting limits, or poorer winning chances. Eco who commissioned the survey emphasized that the 5.3% gaming tax which the German federal states set on stakes could make prospective punters find the legalized offer unattractive such that they will exit the German market eventually. It is also likely that the players would opt for non-regulated and illegal offers where they are not guaranteed any player protection in the medium term.
Statement from Honorary President of Eco
Also speaking on the survey, Professor Michael Rotert, Honorary President of Eco stated that:
The new State Gambling Treaty is an essential step towards achieving a modern gambling regulation in Germany. However, he noted that there is a need for improvement such that channeling and liberalization should be the major idea of regulation in taxation and also in the State Gambling Treaty.
The Honorary President continued, stating that the legislator should ensure that the design of its regulation complies with both the market and the law so that the original aim of liberalizing and opening up the market will not be thwarted. The German state and federal government’s tax plans are currently jeopardizing the original objective. Rotert mentioned jurisdictions like Italy, Spain, and Denmark as examples of best practices with regard to channelling. Similarly, Eco stressed the need for improvement in terms of data protection, especially the planned state blocking file which can be used to exclude players from gambling. According to Eco, a sensible regulation must allow for state control and the opening of the online gambling market to providers with licenses under state control.
Excessive data collection, plans for taxation, and restrictive regulations must not jeopardize the provision because the survey also proved the importance of people’s personal data protection. Due to the findings of the survey, Eco has recommended that legislators should make adjustments from the perspective of data protection and advocated for an objective debate.
A draft bill is currently being debated by the German Bundestag for a new Racing Betting and Lotteries Act and other matters to give room for the provision of a new gaming tax. It is expected that the new German State Gambling Treaty will be enforced in July.
We reported on the situation in Germany early on when we began the Livecasinocentral.com website – Microgaming prepared itself for new market changes and the full story on the German regulation is here!