GVC is requesting assistance from German regional authorities for its transformation strategy – iGB
GVC Holdings has presented a proposal to German state legislators that would see the enactment of Germany’s new gambling regulatory framework provisions in stages, rather than a complete implementation on the designated date.
The operator stated that its model would likely implement the Glücksspielneuregulierungstaatsvertrag (GlüNeuRStV) in five phases, meaning prospective applicants would have until early 2021 to fully adhere to the legislation.
Currently, the law is scheduled to come into effect on July 1 of that year, and still requires ratification from the states and the European Commission. Last week, the postponement period, which was initially set to expire on August 19, was extended to September 18, after Malta submitted detailed observations on the framework.
GVC believes that a gradual implementation of GlüNeuRStV will guarantee that new consumer protection standards are put in place early, while also ensuring that players can wager through compliant operators, rather than illicit market rivals.
As per GVC’s blueprint, a thorough internal evaluation will be carried out for each firm to guarantee they can execute all the stipulations outlined in the legislation. Operators will then ensure their systems adhere to GlüNeuRStV provisions in five phases.
Operators assert that by utilizing this structure, the new regulatory mandates for sports wagering and payments can be established within a few months. They state that customer verification prerequisites can be in place within ten weeks, and the new deposit constraints can be implemented in three and a half months.
iGB has reached out to GVC to gain a clearer comprehension of what each stage entails.
“The objective of the new state agreement is to direct as many wagers as possible to regulated and state-controlled providers, because there, player protection and the battle against addiction can be best secured,” remarked Martin Lycka, GVC’s Director of Regulatory Affairs. “GVC fully supports this objective.
“To achieve this objective, game regulation should be transferred to the new regulatory model within a transitional period, to the extent technically possible, until the new agreement takes effect.”
He elaborated that this procedure will ensure player protection standards and bolster efforts to combat gambling dependency in the near term.
The German Gaming Federation (GGF) has suggested a strategy to safeguard internet casino operators from legal action. This comes as numerous German states, including North Rhine-Westphalia, Bavaria, Hamburg, and Berlin, are contemplating similar plans.
The GGF’s chief executive, Robert Lycka, cautioned that without a temporary solution, many patrons will resort to the illicit market by next summer. He stated, “Without such a temporary solution, we will lose many patrons by next summer, who will turn to the illicit market, primarily outside Europe, where there are no sufficient safety measures.” Lycka added that this would weaken the objectives of the new rules and could make them impossible to accomplish.