Latest Updates on the New German Sports Betting Application 5th of September, 2019
Agenda 09:30 – Registration 10:00 – Welcome and Introduction (Chevron) 10:05 – Status Quo of the German Interstate Treaty on Gambling (Redeker) 10:25 – Presentation of the Requirements (Chevron) 10:45 – Legal Criticals: Betting Program/Limit of 1,000 Euro (Redeker) 11:00 – Necessary Concepts (Sales, AML, RG) (Chevron) 11:15 – Legal Criticals: Advertising including Bonuses/Online Casino (Redeker) 11:30 – Necessary Concepts: Payment, ISMS (Chevron) 11:40 – Questions (Redeker / Chevron) 11:55 – Closing
Application requirements for a German Sportsbetting License
Timeline From the Presentation of the Regulator at the 13th of August 2019 ▪ Applications can be submitted in October ▪ Until the end of December the Interstate Treaty will go through the parliaments of the 16 states (Bundesländer) ▪ 02nd of January 2020: the official application procedure starts ▪ After a short grace period letters will be send out to operators which did not submit an application ▪ The authority is aware of 160 operators operating on the German market ▪ “experimental phase” / license valid until 30st of June 2021
Application Requirements General Information/Formalia ▪ (Official) Certificates / documents not in German must be accompanied by a German (certified) translation. ▪ Application documents must be submitted in paper form and be transmitted via email or upload. ▪ Only if the required documents from the country of origin have no equivalent legal provision, the requirement may be waived. Regional Council has identified no. II. 5., 6., 9. and 10. as open to this waiver. ▪ Some documents (e.g. DD) must not be older than 3 months. ▪ Further application documents may be requested subsequently. ▪ References must indicate the exact location including page numbers. ▪ According to the presentation at the 13 th of August forms of the requested declarations will be provided by the authority. ▪ Questions will be answered within the F&Q section of the website of the regulator
Application Requirements List of Requirements 1. General information / DD on the applicant and the authorised representatives 2. Designation of a receiving agent (local lawyer) located in Germany / PoA (original) 3. Copy of the commercial registration in Germany (Gewerbeanmeldung) if applicable 4. Foreign gambling licence if applicable 5. Excerpt from the register of companies 6. Certificate of good standing of the tax authorities from the applicant and the authorised representatives 7. Confirmation of the Tax Authority Frankfurt a. M. III / sports betting tax (“ Bescheinigung in Steuersachen” ) 8. Excerpt from the debtors register in Germany or outside of Germany an equivalent document 9. Excerpt from the Central Commercial Register in Germany or equivalent e.g. Certificate of Good Conduct / police record from the applicant and the authorised representatives
Application Requirements List of Requirements 11. Proof of expertise of the directors (commercial qualification and 2 years of betting operator activity) 12. Presentation of the complete ownership and shareholder structure 13. Disclosure of trustee relationships 14. Declaration / Commitment not to offer unauthorised gambling, also through affiliated (verbundene Unternehmen) companies as e.g. members of the same group 15. Statement on how the security (e.g. bank guarantee) of 5-25 million Euro will be provided 16. Declaration of diligent recordkeeping for betting tax calculation purposes 17. Certificate of auditor / chartered accountant confirming of operating cash flow / funds and explanation of how the business is funded 18. Statement from an independent auditor of the ringfencing of player balances and declaration on insolvency insurance of customer funds
Application Requirements List of Requirements 21. Acces to realtime data in ARGUS / XML format via webservice independent from operational databases 22. Transparency to the player concept, e.g. game description, complaint management, licensee information, Gambling therapy information, data privacy policy 23. Business projection for 2020/2021 (relevant for calculation of application-/annual supervision fee, security) 24. Monitoring of match-fixing: internal measures and cooperations with external providers 25. General terms and conditions: online and through landbased agent networks 26. Contact person for the betting operation 27. Designation of a Data Protection Officer with sufficient knowledge of the German law 28. Declaration regarding notification of changes 29. Declaration regarding completeness of documents
Sales Concept
Sales Concept Minimum Requirements for Application 1. General requirements (Internet and Retail) List of all brands differentiated according to distribution channel – Declaration reg. bet type restrictions – Description of customer card functionality – 2. Internet-specific Requirements Information as to whether the technical processing is performed by the company itself or by a service provider . – Details regarding the service provider (name, address, e-mail, telephone number). – List of the internet domain (s) and mobile internet application (s) or app /s – Description of the website (in particular: customer hotline, language settings, data protection information, imprint, help options, – handling private mode, information about gambling licence valid in Germany). 3. Business projection for 2020/2021: Projection of the expected amount of stakes for sports betting operations in Germany (not explicitly part of the sales concept; – relevant for the calculation of the license application, annual supervision fee and security)
Anti-Money Laundering
Anti-Money Laundering Minimum Requirements for Application 1. Identification The requirements of the German Anti-Money Laundering Act for the identification of business partners must be met at any times. – Online: – Full DD within 30 after registration with a wagering limit of 150 € – Smart way of verification of players identity will be a competitive advantage; the Germany AML requirements request full DD on players – Non-certified copies of identification documents are not seen as sufficient for the standard CDD procedure – Land-based: – Until now it is unclear if the monitoring requirements may allow anonymous betting in the future – 2. Player Account A player account meeting the requirements of the German Anti-Money Laundering Act and subsidiary legislation (Anwendungs- und – Auslegungshinweise zum Geldwäschegesetz, AuA) must be established 3. Payment Transactions/Bank Account All payment transaction can only be performed through payment accounts according to the German payment service legislation – (ZAG) or recognised similar EU legislation
Anti-Money Laundering AML Concept ▪ A full AML Concept including risk analysis is not explicitly required to be submitted as an application document, but ▪ Requirements of the German AML legislation must be taken into consideration and will be evaluated by the relevant supervisory authorities after granting of the license ▪ In brief, an Anti-Money Laundering Concept would have to cover: – A risk analysis – Internal security measures (e.g. Automated AML Monitoring System, Training, Employee DD …) – Appointment of an German speaking AML officer and deputy – Compliance with due diligence obligations under the AML Act – KYC measures – Internal revision
Anti-Money Laundering AML Management System ▪ Risk analysis, AML measures and internal revision are main parts of an ISO managemet system ▪ ISO 19600 provides a framework for a Compliance Management System (ISO 31000 for Risk Management) ▪ Details on the implementation of an „AML Compliance Management System“ according to ISO 19600 and ISO 31000 for Malta, Germany and other jurisdiction can be provided on request
Player Protection
Player Protection Concept What is prevention? ▪ Prevention is a key element of healthcare = avoiding the development of a disease Prevention is a generic term in public health care for targeted measures and activities to prevent diseases or damage to health, to – reduce the risk of the disease or to delay its occurrence. Preventive measures can be assigned to measures of the first, the second or the third degree, all according to the time at which they are applied. Furthermore, preventive measures can be differentiated according to whether they are based on individual behaviour (behavioural prevention) or on life circumstances (environmental prevention). ▪ Player Protection (how it is anticipated in Germany = Prevention of addiction in gambling) ▪ Player protection obligates different stakeholders in gambling
Player Protection Concept What is prevention? ▪ There are two approaches to prevention in healthcare 1. Behavioural prevention Behavioural prevention refers directly to the individual person and his or her individual health behaviour. This includes, for example, – measures that strengthen one's own health competence. The aim is to reduce risk factors, e.g. through problematic or pathological gambling. 2. Environmental prevention The environmental prevention takes life and work circumstances into account. This includes, for example, the life environment and – other factors which may influence health, such as the range of products on offer and the accessibility/availability of gambling services.
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