A recent investigation has uncovered a covert agreement between German federal states and online gambling providers that appears to undermine key player protection measures established in the country’s 2021 gambling legislation. This revelation has sparked outrage among addiction experts, legal scholars, and government officials alike, who fear the deal jeopardizes the very safeguards designed to protect vulnerable players.
Background: Germany’s Gambling Reform
In 2021, Germany adopted the Glücksspielstaatsvertrag (State Treaty on Gambling), a significant reform that legalized and regulated online gambling for the first time. The law aimed to strike a delicate balance between allowing online gaming and minimizing addiction-related harm.
One of its cornerstone features was a strict €1,000 monthly deposit limit per player. This limit was designed to curb excessive gambling and shield individuals—particularly those prone to addiction—from spiraling into debt.
The Secret Agreement: Undermining the €1,000 Limit
Despite this protective framework, a confidential agreement reportedly made in November 2022 allows players to bypass the €1,000 deposit cap. Under the arrangement, players can increase their monthly deposit limit to as much as €10,000—without undergoing a rigorous financial or income-based background check.
Instead, providers conduct a basic SCHUFA G-credit check (a German creditworthiness assessment), which does not reflect a person’s financial status, assets, or affordability. Critics argue this loophole enables even financially vulnerable individuals—such as low-income earners or students—to obtain higher deposit thresholds with little oversight.
This controversial situation is detailed in-depth in a recent exposé by Minimum Deposit Casinos titled Controversy over online gambling in Germany, which examines how the agreement circumvents key player protection laws and raises concerns about regulatory integrity.
Real-World Example: Student Approved for €10,000 Limit
A glaring example highlighted in the report involves a student earning around €1,000 per month who successfully raised their deposit limit to €10,000. The process, far from comprehensive, was based solely on a credit inquiry that failed to consider the player’s ability to afford such losses.
Addiction specialists are alarmed. Dr. Tobias Hayer of the University of Bremen warned that the procedure could be exploited by at-risk individuals, who may be driven to request limit increases in emotional or financial vulnerability moments.
Widespread Criticism from Experts and Officials
The backlash has been swift and severe. Burkhard Blienert, Germany’s Federal Drug and Addiction Commissioner, condemned the deal, saying it essentially hands gambling companies a “free pass to profit off people’s suffering.”
Other state officials, such as Bremen’s Interior Senator Ulrich Mäurer (SPD), have called for the immediate revocation of the secret agreement, claiming it violates the core intent of the Glücksspielstaatsvertrag. Mäurer stated that the SCHUFA G-check does not meet the scrutiny needed for such a significant exemption from the law.
Is the Agreement Even Legal?
Beyond moral concerns, legal scholars are questioning the constitutionality of the deal. Professor Christoph Degenhart, a respected constitutional lawyer, has publicly suggested that the agreement may contradict federal law and be illegal altogether.
Legal action may not be far behind. Some law firms encourage players who suffered financial losses under the raised limits to pursue compensation, potentially setting a precedent for further challenges.
What This Means for the Future of Online Gambling in Germany
This controversy poses serious questions about transparency, consumer protection, and regulatory integrity in the German online gambling industry. If regulators are found to have facilitated or disregarded practices that endanger players, trust in the system could be irreparably damaged.
Online casino operators, too, may face increased scrutiny—not just in Germany but across the EU—especially as more countries examine the ethics and effectiveness of their gambling regulations.
The secret agreement between Germany’s federal states and online gambling operators represents a stark contradiction to the responsible gaming goals enshrined in the 2021 gambling treaty. By allowing players to exceed established deposit limits without robust checks, regulators risk enabling the harm they were meant to prevent.
Transparency, accountability, and reform are urgently needed for public trust and player safety.
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