Germany has relaxed one of the most controversial restrictions in its online gambling framework, allowing licensed operators to increase maximum stakes on online slot games for qualifying players.

The move comes ahead of the long-awaited review of the country's 2021 Interstate Treaty on Gambling and is widely viewed as a recognition that the current regulatory framework has struggled to channel players away from the black market.

While regulators insist the changes maintain strong player protection measures, industry representatives hope they signal the beginning of broader reforms to improve the competitiveness of Germany's regulated market.

Higher stake limits introduced for qualifying players

From July, licensed online casino operators approved by Germany's Joint Gambling Authority of the Federal States (GGL) can offer higher staking limits than the long-standing €1 per spin cap.

Although €1 remains the default legal maximum, operators may now increase limits to:

- €3 per spin for players aged 21 and over.

- €5 per spin for players who have shown no signs of problematic gambling during the previous 90 days.

The higher limits are not available automatically. Operators must meet strict regulatory requirements and obtain approval before implementing the changes.

Mandatory player monitoring

The increased stake limits come with enhanced player protection obligations.

Operators are required to monitor player behaviour before and after granting access to higher staking levels. Should indicators of harmful gambling emerge, they must intervene through appropriate responsible gambling measures.

Possible interventions include:

- Contacting the player.

- Restricting gambling activity.

- Suspending the player's account.

According to the GGL, the revised rules are intended to reflect changing market conditions while remaining consistent with the objectives of Germany's Interstate Treaty on Gambling, particularly around addiction prevention and consumer protection.

Industry welcomes long-awaited change

The decision follows years of lobbying by licensed operators, who have argued that Germany's strict product restrictions have driven players towards unlicensed offshore platforms.

Entain described the move as a "positive signal" for the regulated market.

Simon Priglinger-Simader, Senior Regulatory Affairs Manager DACH at Entain Group and Vice President of the German Online Casino Association (DOCV), welcomed the decision.

"The federal states are demonstrating their willingness to regularly review the practical impact of existing regulations and to make adjustments where necessary to achieve the objectives of the Interstate Treaty on Gambling," he said.

"We hope that this decision will encourage more players to return to the regulated market."

Priglinger-Simader also suggested the decision reflects growing political recognition that current regulations have not achieved their intended objectives.

"It's clear that the states wouldn't have made this change if they hadn't seen the issue with channelisation and with the limited products we have been offering," he said.

Treaty review could bring further reforms

The change arrives just months before Germany completes its first formal review of the Interstate Treaty on Gambling since it came into force in 2021.

Representatives from all 16 federal states are currently assessing whether the legislation has achieved its key objectives, including:

- Protecting consumers.

- Preventing gambling addiction.

- Channelising players towards licensed operators.

Licensed operators have consistently argued that high taxation, restrictive product rules and lengthy licensing procedures have made it difficult to compete with illegal operators.

According to the DOCV, online channelisation currently sits only in the "mid-double digits", meaning a significant proportion of German online gambling still takes place on unlicensed websites.

Calls to remove ineffective regulations

Industry stakeholders hope the review will lead to additional reforms beyond the revised stake limits.

Luka Andric, Managing Director of the German Sports Betting Association (DSWV), believes policymakers increasingly recognise the need to make the regulated market more attractive.

"What has changed is a growing awareness that the current framework is not fully achieving one of its central objectives: creating a sufficiently attractive legal market," Andric said.

"Only a competitive legal market can keep players in a regulated environment and ensure effective protection."

He added that regulations which have failed to improve channelisation should be reconsidered.

"Rules that have proven ineffective, particularly in terms of channelisation, need to be revised or removed."

Deposit limits remain under discussion

Another key issue likely to feature in the treaty review is Germany's deposit limit system.

Current rules generally cap monthly player deposits at €1,000, although certain customers can qualify for limits of €10,000 or €30,000 after enhanced affordability and risk assessments.

Existing guidance expires at the end of the year, and regulators are expected to consider new proposals.

One possible compromise would allow higher deposit limits while introducing more comprehensive income verification and credit checks.

Priglinger-Simader warned that returning to a universal €1,000 cap would represent the worst possible outcome for the regulated market.

Additional reforms on the horizon

Industry representatives also hope discussions will extend to other restrictions introduced under the Interstate Treaty.

Among the areas under consideration are Germany's prohibition on online table games in many jurisdictions and the controversial five-second minimum spin rule for online slots.

Current legislation requires games to maintain an average spin duration of five seconds, although operators and regulators are reportedly discussing whether greater flexibility could be introduced while maintaining responsible gambling standards.

First step towards a broader regulatory rethink?

For now, Germany's licensed operators are celebrating what they view as their first significant regulatory victory since the Interstate Treaty came into force.

Many operators have already begun implementing the higher stake limits alongside the enhanced player monitoring systems required by the GGL.

Whether the revised stake limits represent an isolated concession or the beginning of a broader overhaul of Germany's online gambling framework will become clearer once the treaty review is published later this year.

Sources: iGamingBusiness