GVC Holdings has confirmed and secured its future in Germany, announcing on October 12 that it had received four sports-betting licenses in the country. The company had received the licenses on October 9 for its bwin, SportingBet, Ladbrokes and Gamebookers brands.
The license will allow each of the brands to continue offering sports-betting products in Germany. This allows GVC Holdings to smoothly transition under the new Tolerance Policy.
Under the new licenses, each brand must set a wagering limit of €1,000 euros per month, increasing to €10,000 if criteria are met. A 1% of customers, likely VIPs, may see it further increased to €30,000 with more criteria being met. There are also new strict deposit limits until Know Your Customer (KYC) checks are met, and bonuses have been curbed to a maximum of €100 per year.
Operators must also meet strict responsibility requirement. GVC’s bwin brand joined a chorus of other operators recently decrying that some of the requirements demanded of them have a “unrealistically tight implementation deadline.” Operators were told they would have two weeks to shut off online casino table games, at least until individual states offered licenses, and in-play sports betting markets would have to be reduced.
The licenses have been issued with immediate effect, but implementation plans might not be cemented until the beginning of 2021. GVC warned that once they do go into effect, the restrictions could cut Group EBITDA (Earnings before interest, taxes, depreciation, and amortization) will be reduced by up to £40m1 on an annualised basis.
GVC CEO Shay Segev commented on the new licenses:
“The award of these licences is great news for GVC, bringing the clarity and certainty that we have long sought for sports-betting in Germany. Combined with the recent Tolerance Policy we can now look confidently to the future, building on our position as a market leader by delivering an unparalleled, innovative experience for our German customers. The much-anticipated regulation of online gaming in Germany re-enforces GVC’s position as the most globally regulated and responsible operator in our industry.”