According to recent research, regulations governing gambling deposit limits were considerably reduced when German authorities and sports betting companies reached a court settlement in 2022.
Experts are concerned about a recently uncovered agreement between German governments and internet gaming firms. They contend that it compromises important player protection mechanisms.
This arrangement erodes the protections established by the Interstate Gambling Treaty, according to research by Investigate Europe, Monitor, and Zeit Online. This agreement sought to prevent players from becoming addicted to gambling and going bankrupt.
Gamblers Can Avoid Deposit Limits Through a German Court Deal, Increasing Addiction Concerns
The general monthly deposit cap for online casinos and betting sites is €1,000 ($1,085), according to gaming regulations implemented in Germany. This regulation seeks to lower financial risks and restrict excessive gaming.
Players who can demonstrate their financial stability, however, may request a greater limit. At first, this verification procedure required documents such as bank records or tax forms.
Following a court settlement between German authorities and sports betting firms in 2022, recent findings indicate that this regulation has significantly relaxed. Gambling companies can employ the Schufa G check to verify a player’s stability thanks to this confidential agreement.
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The Schufa G check, however, does not provide precise details regarding a player’s earnings or actual financial status. According to research, even those with low incomes might increase their deposit limit to €10,000 ($10,845).
Experts warn that for at-risk gamblers, this legal loophole could lead to serious issues. According to German media Tagesschau, Tobias Hayer, a gambling addiction researcher at the University of Bremen, is concerned that those who are already predisposed to gambling problems will use the opportunity to increase their limits, exacerbating their financial difficulties.
The agreement was criticized by Burkhard Blienert, who is in charge of drug and addiction issues for the German government. He says it violates hard-won gaming laws in order to increase corporate profits.
He described the scenario as “maddening,” pointing out that the profits of gaming corporations appeared to take precedence over player safety.
Legal Professionals Demand Constitutional Review and Contest German Gambling Deal
Legal professionals now doubt the validity of the deal. Christoph Degenhart, a specialist in constitutional law, believes the agreement may violate German law and is calling for a constitutional inquiry.
The Joint Gambling Authority of the Federal States (GGL) has been blamed for this, and the majority of state governments have said nothing. The Schufa G method’s compliance with gambling protection regulations is being examined by the GGL.
Ulrich Mäurer, the interior minister of Bremen, has expressed opposition to the deal. He claims that approving Schufa G is contrary to the goals of the Interstate Gambling Treaty.
However, the gambling sector denied the claims that the arrangement was not disclosed. The settlement was a part of a public court process and has been included in official state publications since mid-2024, according to the German Sports Betting Association (DSWV).
However, the DSWV acknowledges that adjustments are necessary. To improve player protection, the association recommended more frequent credit checks and more stringent financial monitoring in August 2024.
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