Baden-Württemberg Legalizes State Monopoly for Online Casinos

Baden-Württemberg has joined the ranks of German states legalizing online casino games, following the footsteps of Bavaria and Schleswig-Holstein. The Landtag, the state parliament, has approved amendments to the Landesglücksspielgesetz, effectively establishing a state-run platform for online casino offerings like blackjack and roulette. This decision, officials argue, will help in curbing illegal gambling operations, enhancing player protection, and noticeably boosting state tax revenues. However, this approach has not gone uncriticized as concerns revolve around the risks of monopolization and addiction potential.

State-Controlled Monopoly and Revenue Structure

Under the directives of the German Interstate Treaty on Gambling (GlüStV 2021), individual states gained the autonomy to regulate virtual casino games since the treaty's introduction in 2021. While previous legalizations focused primarily on online slots and sports betting, table games such as blackjack and roulette were left to state discretion. With the new amendments, Baden-Württemberg has stipulated that a singular online casino will operate under the control of Staatliche Toto-Lotto GmbH. According to Interior Minister Thomas Strobl, the monopoly ensures heightened oversight as public institutions often prioritize consumer safety over mere profits. Access to this platform requires players to be residents of Baden-Württemberg, verified through official address registration.

Financially, the legislation integrates a tiered tax system on online casino revenue, structured as follows: 15% tax on monthly revenue up to €300,000, 20% on €300,000 to €750,000, and 25% on amounts exceeding €750,000. This tax strategy is designed to steer players away from likely unregulated offshore gambling platforms, in support of the overarching German goal—to ensure consumer protection and transparency through legal channels.

Regulatory Measures and Industry Response

Stringent regulations mirror those imposed on online slots, with a €1 stake limit per spin, a mandatory five-second interval between spins, and a €1,000 monthly deposit limit across all platforms, alterable only with verified income and credit history. Additionally, a specialized unit, Fachstelle Glücksspielsucht Baden-Württemberg, will spearhead addiction prevention through research, public campaigns, and direct support for susceptible individuals.

Despite the potential benefits, criticism exists concerning the state's ability to effectively manage compliance. Sascha Binder, an expert in gambling policy from the SPD, questions the feasibility due to resource limitations, whereas Daniel Karrais from the FDP critiques the monopoly's exclusion of private competitors, suggesting it prioritizes state profit. Moreover, addiction prevention specialists warn against heightened advertising for legal gambling, fearing it could inadvertently raise addiction rates.

In parallel with these changes, enforcement efforts will increase, featuring a new division within Regierungspräsidium Karlsruhe tasked with overseeing and enforcing compliance in gambling establishments. These include covert operations to identify non-compliant online platform operators.

Baden-Württemberg's move forms part of a broader transition within Germany’s online gambling landscape, with each state charting its course. Though the strict regulatory model faces scrutiny for potentially driving users to illicit operators, state officials maintain a controlled, legal substitute is crucial in combatting illegal gambling and safeguarding consumers. As Bavaria and Schleswig-Holstein have already established online gaming laws, the outcomes in Baden-Württemberg will be closely monitored across Germany.

Source: Baden-Württemberg Legalizes Online Casinos with State Monopoly, lcb.org, February 24, 2025.