Skip to main content

German govt in cuckoo land

For several years, there has been much debate about German law and the licensing of sports betting. It's a country divided up into provinces which often have conflicting laws. Most, if not all, of the 'legal' online betting licences in Germany stem from former East German regions which were somehow able to offer things which weren't allowed elsewhere in the unified country. Now with the EU pushing hard for all member states to allow/regulate online gambling, Germany decided it had better follow suit before it got dragged through the courts forever and a day. And this is what they come up with....

Germany’s non-ratified sports betting proposals

7 five-year licences to be issued

16.67% turnover tax

Live betting but only on final result. No in-play

Only land based casinos would be able to operate online casino

Sports betting advertising only allowed on or in sports arenas and club shirts and not on television

-----

France is the most recent big European nation to build a regulatory structure for online gambling, and it has been condemned as a failure by all and sundry. The whole point of setting up a licensing regime is to regulate it and stop money being bet with firms outside the licensing arrangement. But France introduced an 8.5% turnover tax, plus sports rights fees which bring the total tax rate up to about 11%. Think about that as part of the over-round on a market - on the big football leagues of Europe, few bookies bet over 110% these days. If you were betting a two-way market such as under/over 2.5 goals, that equates to 1.8/1.8 before you consider all the other operating costs. But the French don't stop there. They have another body, the TRJ, meddling where they don't belong, enforcing a rule that bookmakers can pay back no more than 85% of their turnover (117% if you prefer the over-round way of reading percentages). So bookies are forced to make a profit (it's not as easy as it looks folks, believe me) which means they have to offer markets with ridiculously high margins and just rely on mugs losing constantly. Any punters with a clue bet elsewhere and can you blame them?

Germany haven't bothered to read the figures which show how badly the French system is going. Instead they've decided to DOUBLE the rate of turnover tax, with no word on what they will do regarding payments to sports bodies. Germany doesn't have a strong betting culture. Racing is very niche and sports betting isn't heavily in the local psyche, although it has improved in recent years with the likes of bwin having their logo everywhere across Europe.

By the time you account for operating costs and the turnover tax, German punters will be looking at prices on a tennis match of 1.6/1.6. Not even Canada's ProLine or state monopolies in other countries can offer prices that disgraceful!

All this will do is send more money from German citizens to other countries - not such a brilliant idea. Share prices for bwin.party and Betfair dropped sharply today in wake of the news.

Comments

  1. If Germany will do the same as Italy and France it will be the end of betting also in this country. The problem is that people that do not understand the market are called to make laws in the matter.
    Marco
    http://www.tips-free-bets.com

    ReplyDelete

Post a Comment

Thanks for your comments, but if you're a spammer, you've just wasted your time - it won't get posted.

Popular posts from this blog

Henry VIII Novices’ Chase

It's not just about the Tingle Creek tomorrow at Sandown, there's a Grade 1 Novice Chase amongst the rather decent supporting card. Lining up for the preview is astute NH enthusiast Sam Tribe, @samtribe87.

---------------------

Racing Post Henry VIII Novices’ Chase
Grade 1 Chase, 2 Miles
Sandown 13:50
Likely going Soft, Good to Soft in places


With doubts concerning the fitness of last year’s Queen Mother Chase winner Sire De Grugy and of the two mile chase king Sprinter Sacre (despite bullish remarks from Henderson) there is a chance for another to step into the limelight. Both have won the feature race of the day, The Tingle Creek Chase and that will more than likely throw a few into the hat. However, I have chosen to take a look at the Henry VIII chase, which was changed to a grade 1 in 2011 and has been won by some nice prospects in the past (Somersby and Al Ferof to name but a few). Let’s hope that a potential Champion Chase contender of the future will feature in this …

lay the field - my favourite racing strategy

Dabbling with laying the field in-running at various prices today, not just one price, but several in the same race. Got several matched in the previous race at Brighton, then this race came along at Nottingham. Such a long straight at Nottingham makes punters often over-react and think the finish line is closer than it actually is. As you can see by the number of bets matched, there was plenty of volatility in this in-play market. It's rare you'll get a complete wipe-out with one horse getting matched at all levels, but it can happen, so don't give yourself too much risk...

Kentucky Derby preview

It's America's big day of racing, where 90% of them will be there to be seen and most won't have a clue what difference Churchill Downs Inc's latest takeout hike does to shaft them on every bet placed. Throw in the standard arguments about race-day medication in the US and the recent New York Times/PETA expose on yesterday's Oaks-winning trainer Steve Asmussen, and racing in North America could be in better health.

Still, it's one of the elite races and great occasions of the world, and stepping up to the plate is Jon da Silva again, @creamontop, with his preview in a very American style. (No I don't understand Brisnet figures either...)

------------------------------

The Kentucky Derby Presented by Yum Brands

They say you should avoid food additive E-numbers which you can’t with Yum Brands…

Yum! Brands, Inc. or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwid…