In many sports betting tests, reference is always made to the bookmaker’s license. But what is actually behind these licenses? In the following guide, we have taken a closer look at the sports betting license and want to shed some light on it. We also take a look at the legal situation in Germany
Why is a license important?
Every business on the Internet has something to do with trust. No sports bettor really knows the person they are betting on – the tips are given almost anonymously. Of course, it is theoretically possible that a shady businessman puts a sports betting portal on the World Wide Web and simply wants to collect customer money. This is certainly the most serious form of fraud.
On the other hand, it may be that the “bookie” meant well, but simply does not have the financial background to run a betting business. Logically, the bookmakers have the mathematical advantage over their customers, but it can still happen that very large sums have to be paid out within a very short time. Sports betting is always a small competition between the provider and the customer – the outcome is open. The sports betting license confirms the seriousness of the betting provider on the one hand, but also its integrity and financial background on the other. Only those who can present a corresponding license can legally sell bets via the online channel. Of course, stationary bookmakers also need a corresponding license.
Some newbies will certainly be wondering where the sports betting license can be viewed. Every good online bookmaker publishes this security data on its website. The necessary information can usually be found at the bottom of the homepage or in the imprint. If this is not the case, alarm bells should ring for users. Never register on a website that does not contain any information about the sports betting license.
Who gets a sports betting license?
The sports betting license is only issued upon application by the respective supervisory authorities. To do this, the companies must disclose their complete financial situation. In addition, a not inconsiderable fee and a deposit must be paid. This is where the wheat is separated from the chaff.
Of course, the company owners and managers are also closely examined. Only those who can prove their seriousness have a chance of being granted a sports betting license. Money is not the only or the decisive award criterion.
Which supervisory authorities are considered particularly safe?
In Europe, Malta and Gibraltar have proven to be pioneers in the online scene in recent years. The two small states have taken advantage of the disagreement of the “big ones” and have proven to be a safe haven for sports betting providers. Anyone who believes that the settlement of bookmakers in the two countries is only associated with tax advantages is very much mistaken. Both regulatory authorities ensure a legally flawless betting environment – for betting providers and customers alike. The Malta Gaming Authority in particular has also proven to be a very strict controller. If irregularities occur at a bookmaker, the license can be withdrawn immediately. The Gaming Commission in Great Britain and the regulatory authority on the Isle of Man are also considered progressive in Europe.
It should not be forgotten at this point that the two Caribbean states of Curacao and Antigua and Barbuda also have valuable sports betting licenses. The licenses are in no way inferior to the European paper.
What is the legal situation in Germany?
From a legal perspective, sports betting in Germany still leads a shadowy existence in a grey area. Although EU guidelines have long set the pace and are being implemented by many other countries, things are simply not moving forward in Germany. One grotesque situation follows another.
There is still a strong lobby, especially in Berlin government circles, that wants to keep all gambling under state control with all its might. In the area of sports betting, there is special “protection” for the “state bookmaker” Oddset. The fact that the bets at the Toto and Lotto provider are simply “bad” is simply omitted at this point. What is worse is that the Berlin legislator even cites the fight against gambling addiction as the reason for its blockade. EU regulations have been disregarded or simply ignored for many years.
The permits from Schleswig Holstein
One or two readers have probably already heard of a sports betting license from Schleswig-Holstein. The Interior Ministry of the northern German state actually got to work in 2012 to implement the EU guidelines. The licenses from Schleswig Holstein are valid until 2018 and are legally valid for the entire federal territory. At the time, the northern Germans also refused to join the new state gambling treaty.
At the same time, the Ministry of the Interior had developed a very fair tax model that would have benefited the state budget. The regulations were implemented by the CDU-FDP coalition at the time. The consequence was that the federal government was forced to include the German betting tax in the 1921 Racing and Lottery Act. Since federal law takes precedence over state law, the progressive northern Germans were recaptured with a little legal “trick”. In the meantime, the new red-green state government has retroactively joined the states’ state gambling treaty.
The current approval process
In the last two years, the grotesque situation has occurred. The Federal Government commissioned the Ministry of the Interior to distribute 20 sports betting licenses in Hesse. The problem with the whole affair, however, was that no one on the legislature’s side could explain exactly why only 20 licenses were awarded. At the same time, the selection criteria were unclear from the start.
Logically, this success has not helped the bookmakers so far. The rejected companies have inevitably gone to court. As a result, several administrative judges have stopped the issuing of sports betting licenses.
The “black Peter” is now, of course, the Hessian Minister of the Interior, Peter Beuth. However, the politician has taken a clear stance several times in recent months. The tenor of his statements has long been that every applicant must receive a license if the necessary requirements are met. Otherwise, the sports betting license could also be played out directly at the roulette table.
It remains to be hoped that Peter Beuth will be heard in Berlin. The work of the federal government in recent years on sports betting can be summed up simply as follows: “We start some kind of bubble without any legal background and then publicly wonder why it didn’t work.” To put it in the style of government spokesman Seibert: “We have worked to the best of our knowledge and belief – I have nothing to add to that.”