Schleswig-Holstein has made good on its gambling industry promise by awarding the first three online betting licences earlier today. Betfair, JAXX SE and Die NordwestLotto Schleswig-Holstein have been awarded licences in the only German state that broke to regulate the gaming industry. The system of taxation will be 20 percent of gross gaming revenue and these three are just the first of a number of licences that will be granted.
The lucky three were understandably in congratulatory mood and almost donned the celebratory lederhosen ahead of a day of beer swilling. Betfair’s chief legal and regulatory affairs officer Martin Cruddace said that Schleswig-Holstein should be “applauded” for their regulatory effort that “will provide security for consumers, transparency for regulators and the freedom to compete for EU operators”. One of the homegrown operators, JAXX SE, has been granted a licence for myBet.de and was happy to have been one of the first to open up in their home province.
“The permit for mybet is a document of historic importance because it represents a trailblazing approach to the regulation of the gaming industry” said Mathias Dahms, management board spokesperson for JAXX SE. “The regulatory authorities in Kiel conducted an exhaustive and very demanding examination that in certain respects exceeded the standards applied in other European countries. It involved a great deal of work for us.”
As for the other 15 lander, Dahms added: “The draft State Treaty of the other 15 federal states is clearly a shabby compromise that has lost its way in a bureaucratic jungle at federal level. The opposition in the Kiel state parliament, too, will now discover that having its own gaming law is good for the state, and good for its finances.”
Decisions on the continent always affect the share prices of the firms involved and today is no different. After the news broke, Betfair’s price rose 2.45 percent to 814p and you can be sure the market volatility that always accompanies German announcements will be present over the coming months. For now, part of the €1 billion market is open and the next move will be awaited eagerly.