Germany has been trying to pass a new legal framework that covers online gambling for a while. The first three attempts have failed because the European Union rejected certain parts of the new law under the argument, they don’t comply with EU regulations.
The country presented its revised fourth version of the “State Treaty of Gambling” to the European Union and it’s expected that it will be approved this time around.
One of the main goals of the treaty is to protect the players by adding deposit limits and betting limits, as well as other measures like more information about gambling addictions and how to handle that.
The other important part is related to changes in the taxation of online gambling operators licensed by the country. The flexible approach will be based on the turnover of each site. The small players on the market (up to €40 million) will pay 2% of the turnover. The percentage goes down for bigger companies, but they also have to pay an additional fixed fee.
While the new gaming framework doesn’t specifically mention cryptocurrencies in any way, there is no reason to believe it restricts operators that allow their customers to use Bitcoin for online gambling. In fact, nothing seems to be stopping them to apply for a license and provide the German users with a safe and regulated environment for online gambling.
Furthermore, such a legislation framework might open the door for countries in the European Union. If they follow the same path and apply reasonable fees, the online crypto gambling industry could very well leave the grey area it currently resides.
Of course, the gambling treaty must be approved by the European Court and at least 13 of the 16 federal states in Germany. If that’s the case, it will be applied from June 1st, 2020 and that’s when we’ll truly understand its effect on the crypto world.