The future of deposit limits for online gambling in Germany remains uncertain as the suitability of SCHUFA-G, the main tool used to assess players' financial circumstances for higher deposit limits, has come under legal scrutiny. This issue was highlighted during the recent 'Gaming in Germany' webinar, where industry experts discussed the implications for the market as temporary permissions for increased deposit limits are set to expire at the end of the year.
Legal Challenges to SCHUFA-G
SCHUFA-G allows operators to evaluate whether a player’s standard monthly deposit limit, set at €1,000 under the State Treaty on Gambling (GlüStV), can be increased to as much as €10,000. However, recent administrative court decisions have raised concerns about SCHUFA-G’s adequacy, stating that it focuses on creditworthiness rather than a comprehensive review of assets or financial circumstances. As a result, courts have deemed the tool unlawful and unsuitable, prompting the need for an alternative system.
Upcoming Decision and Possible Alternatives
The German regulator, Gemeinsame Glücksspielbehörde der Länder (GGL), along with its administrative board, is tasked with determining the future approach to deposit limits. Despite two meetings, no resolution has been reached, with the next meeting scheduled for 18 November. Alternatives under discussion include open banking solutions such as Kontoblick and the potential for players to upload documents like proof of income to justify higher deposit limits. The outcome of these discussions remains unpredictable.
Implications for Operators and the Market
If a new solution is not identified and permissions are not renewed, the standard deposit limit would revert to €1,000 for all players—except those who have set even lower personal limits. Industry experts have warned that this could drive players towards unlicensed operators, as higher deposit opportunities would no longer be available in the regulated market. Operators are being advised to apply for new limit increases promptly to avoid disruption should the current permissions lapse.
Other Regulatory Developments
The webinar also touched on related topics, including efforts to curb black market advertising, the potential regulation of esports betting, and the possibility of permitting sweepstakes in Germany. The risk of player migration to the black market remains a significant concern, especially if deposit limits are tightened without a viable alternative.
Key takeaways
- SCHUFA-G's legality as a deposit limit assessment tool is under question in Germany.
- Current permissions for higher deposit limits expire at year-end, with no replacement yet agreed.
- The administrative board will discuss alternatives, including open banking and document uploads, in November.
- Operators risk losing higher deposit permissions, which could push players to unlicensed markets.