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Schlesweig Holstein Abandons Gaming Liberalization

Schlesweig Holstein is putting the skids on their renegade gaming treaty and making moves to ratify Germany’s State Gaming Treaty. The State Treaty is nowhere near as casino-friendly as the on Schlesweig had on tap but lawmakers in the northern lander simply couldn’t make it work in the current political climate.

S-H Won’t Be ‘Germany’s Vegas’ After All

Schlesweig was widely praised in the gaming community for its efforts to breakaway from the hardline State Treaty. The S-H treaty offered a larger number of licenses than State Treaty, which only offers 20, as well as sports betting and table games.

Online casinos won’t be quite as excited to do business under the State Treaty, which places a much heavier tax burden on them than S-H would have. Under their treaty, casinos would be taxed 20% on gross revenues, rather than the 5% turnover tax charged in the State Treaty.

Having trouble tracking German gaming developments?  Check out our iGaming in Germany Timeline.

Why the Turnaround?

Schlesweig’s prodigal son act is big disappointment to companies that had already been issued gaming licenses this summer, but not a surprise to German political wonks. The writing was on the wall after an election last May brought in a coalition government that’s more in line with mainstream German politics.

What do you think about Schlesweig Holstein’s regulatory turnaround? Share your opinion in the comment section below this article.