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North Rhine-Westphalia has moved a step closer to launching its long-awaited online casino licensing framework after the state government introduced amendments to its Online Casino Gambling Act designed to support the rollout of a private licensing model.
The proposed changes expand the regulatory framework governing online casino operations and introduce new provisions covering specialist service providers and live dealer streaming from dedicated studio facilities. The draft legislation also makes clear that licensed operators will remain fully responsible for regulatory compliance, even where operational services are outsourced.
North Rhine-Westphalia is one of only two German states, alongside Schleswig-Holstein, to adopt a licensing model for online casino games rather than a state monopoly. Under the Interstate Treaty on Gambling, online casino games include both virtual dealer games and live broadcasts of table games conducted from physical locations.
The draft bill would also allow multiple licensees to use the same live dealer studio, reducing costs for operators while lowering the supervisory burden on regulators. The explanatory memorandum states that the change recognises the significant financial and operational requirements associated with live casino production and is intended to improve the commercial viability of the market.
Following its first reading in the state parliament, the legislation received backing from the Interior Committee with only minor amendments. These include tighter suitability requirements for service providers and additional restrictions on access to player IP addresses and unique identifiers.
The legislative process is expected to conclude shortly, after which the state is anticipated to launch a competitive tender for up to five online casino licences. The concessions are expected to run for up to 15 years and require operators to actively provide online casino services rather than simply hold a licence.
The development represents a significant milestone for Germany’s regulated online casino market and is expected to create one of the country’s largest opportunities for private online casino operators seeking entry into the sector.
