Following the agreement of the German Federal States on 10 September, GVC Holdings welcomed the implementation of the transitional duration tolerance policy in Germany.
16 Länder (German federal states) announced earlier this month that they had approved a transitional tolerance strategy for the time leading up to the adoption of the Interstate Treaty 2021, published today.
The implementation of the policy will effectively put forward and enforce, to a large extent, several parts of the Treaty which provides ‘clarity and certainty’ in the German market to the GVC States.
GVC CEO, Shay Segev, commented: “The introduction of the Interstate Treaty and Tolerance Policy brings long-awaited clarity to the future of online gaming regulation in Germany. This development is to be welcomed, as is the greater certainty and detail it provides on operating under the new licencing regime.
“The establishment of a level playing field for responsible, licenced operators is ultimately good for German consumers, the group and the industry as a whole. It also re-enforces our position as the most globally regulated and responsible operator in our industry.
“We look forward to building on our market leading offer in Germany and providing our customers with the very best gaming experiences under the new regulatory framework.”
Main elements of the Tolerance Policy that will come into force on October 15 of this year include:
- Switching off all casino table games (eg blackjack & roulette), until the individual states choose to issue licences under the treaty.
- Deposit limits across poker and slot gaming of €1,000 per month. There may be the ability for these limits to be raised once full licences have been issued.
- Certain responsible gaming enhancements such as prescribed verification of customer processes and cooling off periods.
- All poker and slot games must be offered in the German language.
- Restrictions on parallel play on slots and autospins.
- Restrictions on advertising of poker and slots games.
- Some limited restrictions on sports betting in-play markets.
As of December 15, 2020, the following elements will take effect:
- €1 max stake per spin on slot games
- 5 second minimum duration of a slot spin
It is said that the cumulative effect of the Tolerance Policy would decrease sales in the German market. As the strategy comes into force through the 2020 balance sheet, GVC expects that the effect will not significantly affect the Group’s EBITDA expectations for the current financial year. GVC forecasts that company EBITDA will be reduced by about £ 70 million by 2021.
GVC reports that the organisation will be ‘well placed’ for the issuance of sports betting and gaming licences under the treaty that is scheduled to come into force on July 1, 2021, in accordance with the policy.
GVC welcomes the publication of details on the transitional tolerance policy for the period ahead of the implementation of the German Interstate Treaty on online gaming in 2021: https://t.co/wHamgKU8Eg
— GVC Holdings PLC (@GVCHoldings) October 1, 2020