Schleswig Holstein Gaming Act_English version_Oct 2011_fnl


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Schleswig Holstein Gaming Act_English version_Oct 2011_fnl

  1. 1. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15 Act §22 Permit for Betting Companies 9 Restructuring Gaming (Gaming Act) §23 Sales permit 20 October 2011 §24 Betting Regulation and Betting Books 10 Statute Book of Schleswig-Holstein (Schl.-H.) II, Vol. Nr. 2186-15 Section III The Federal State Legislative Assembly has adopted Player Protection the following Act. §25 Information Obligations §26 Advertising Summary of contents §27 Protection of Minors, Player Protection and Declarations 11 Section I § 28 Corporate Social ResponsibilityGeneral provisions 2 Section IV§ 1 Aims of the Act Gaming supervision, Approval control and Federal§ 2 Scope of application State supervision§3 Definitions §29 Competent Approval and Supervisory Authority§4 Event permit 3 §30 Supervisory powers§5 Sales permit §31 Advisory Committee 12 §32 Fees Section II §33 EnforcementApproval Procedures 4 Section VSubsection 1. Lotteries DutiesRegional lotteries, Class Lotteries Subsection 1. Duty aims§6 Regional lotteries §34 Lottery duty§7 Class Lotteries Subsection 2. Gaming Duty 13§8 Sales permit 5 §35 Taxation duty, Object of Taxation§ 9 Brokering requirements §36 Duty Rate, Basis of AssessmentCharitable lotteries §37 Accrual of Duty 14§10 Permits for charitable Lotteries §38 Debtor duty§11 Hosting of Charitable Lotteries; Sale of Charitable § 39 RegistrationLotteries § 40 Duty recovery§12 Lottery Schedule, Costing and conducting of Event §41 Duty aim 15§13 Use of net proceeds 6 §42 Duty revenue§14 Form and Content of permit §43 Responsible Tax AuthoritySmall Lotteries and prize-linked Savings §44 Notification obligations§15 Small Lotteries §45 Notifications to competent authorities§16 Prize-linked Savings §46 Registration and filing Obligations §47 InspectionSubsection 2. Casinos - Land-based casinos§17 Requirements for Casinos, player exclusions, Section VIblacklists, data processing Temporary and final provisions 16Online Casinos (online-casino games) 7 § 48 Temporary provisions§18 General requirements for Online Casinos § 49 entry into force, expiry§19 License as Operator of online-Casinos§20 Sales permit 8Subsection 3. Betting§21 General Requirements for Betting 1/16
  2. 2. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15 Section I §3 General provisions Definitions §1 (1) For the purposes of this Act, “gaming” is Aims of the Act understood as games, lotteries, and betting, in relationThe aim of the Act is to set up a regulatory framework to which payment of money is required in order toin relation to the offer (hosting, sale and brokering) of have a chance of winning. Moreover, the chance ofany of the respective forms of public gaming, and more winning totally or predominantly depends on fortune.specifically, ensure that : Casino games, in which the chance of winning depends on fortune and the player’s skill, are also considered as 1. gaming takes place in an orderly, fair, gaming. Bets requiring payment are also considered as responsible and transparent manner, gaming for the purposes of paragraph (1). gamblers are protected from fraudulent (2) “Land-based gaming” is gaming hosted and offered practices and its related consequences and on fixed premises, especially at sales outlets, and are crimes are prosecuted, offered and accepted there by virtue of the physical 2. citizens can pursue their natural inclination presence of players. Online gaming is gaming, which is towards gaming in an orderly and supervised hosted and offered without the physical presence of way, and in particular, ensure that unlawful players either on the Internet or through other means gaming is curbed and only appropriate forms of distance communication according to § 312 b para. of lawful gaming are permitted in an 2 German Civil Code. appropriate environment, (3) A “lottery” is a form of gaming in which the 3. effective protection of young people and majority of people are offered the chance of winning gaming itself is achieved, money in accordance with a specific plan and in return 4. addiction to gaming is prevented and for a specific payment. The provisions on lotteries also measures are adopted to effectively combat apply, where items or other forms of material benefits addiction and precautions taken against can be won as an alternative to money. A lottery is exploitation through gaming, considered to have a high frequency of events if the 5. the integrity of sporting competitions is not time between the decision over a win or loss of a stake harmed by the hosting and sale of sports bets. and the following decision over a win or a loss of a subsequent stake is less than one day, which therefore §2 gives the lottery a high incentive to play. The Scope of application provisions for lotteries also apply to tote betting. (4) For the purposes of this Act, “betting” is considered(1)By this Act, the State regulates the offer of public as accumulator bets or single bets on the outcome ofgaming falling within the remit of this Act unless the progress of. Accordingly, an “event” is the result orotherwise decreed by current federal legislation. a future or current happening of a sporting(2)As far as Casinos are concerned, and to the extent competition; lotteries and casino games are notthat they are land-based (Land-based Casinos), only §§ considered as betting for the purposes of this Act.1-5, § 17, and §§ 25-27 apply. To the extent the (5) “Casino games” include all the games traditionallyregulatory framework does not fall within the scope of offered in land-based casinos, namely, poker, blackthis Act, the prerequisites for the authorization and jack, baccarat and roulette.establishment of the land-based casinos shall be (6) For the purposes of this Act, “payment” constitutesgoverned by the applicable state law. The procedure a significant financial sacrifice, where it produces a lossand prerequisites for the grant of permits for casino in the absence of a win, regardless of whether thegames with bankers [Black Jack, Roulette, and financial sacrifice is made as payment for the game inBaccarat] comply with the Casino Act of the State of question. By way of derogation from (1) in connectionSchleswig-Holstein. with regional lotteries pursuant to §6(1), all financial sacrifices are considered to be valid payment. 2/16
  3. 3. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15(7) For the purposes of this Act, gaming is considered (2) A permit shall be refused if the hosting of theto be “public” if a large, non-exclusive group of people gaming is contrary to the aims of § 1 or where thecan participate or where gaming is hosted on a regular operator is unreliable.basis by clubs or other private associations. (3) A permit is initially issued for a limited period of six(8) An “operator” is anyone who sets up gaming at his years. Subsequent permits are granted for periods ofown expense. The hosting location will also be the four years respectively.operator’s registered office. A person who hosts public (4) The permit may be subsequently modified withbetting will be considered to be a betting company. additional clauses to the extent necessary for the(9) Gaming is “sold” by anyone who responsibly offers proper implementation of the activities and aims setor creates the opportunity to conclude gaming forth in §1.contracts, in particular by maintaining sales outlets or (5) The permit is issued in writing. It lists the permittedthrough distance sales. Distance sales is understood as forms of gaming. It cannot be transferred or assignedsales achieved by the exclusive use of distance to a third party.communication pursuant to § 312 b (2) of the German (6) The permit may be withdrawn in the future ifCivil Code. The point of sale is the place where the circumstances become known that they would haveplayer has the opportunity of participating. As regards resulted in a refusal of the same, had they been knownonline-gaming, it is the place where the player has at that time.established his residence or his habitual domicile. (7) The permit can also be revoked if the operator:Gaming sales may take place through operators 1. no longer fulfils the criteria for which the permit wasthemselves (self-trading) or through third parties issued,(agents, retailers, and lottery collectors). 2. breaches any of the collateral clauses of the issued(10) An “agent” is anyone who, personally or through permit,third parties, 3. fails to perform his legal obligations arising1. brokers individual game contracts on behalf of thereunder, or operators, or 4. contravenes other provisions of this Act.2. introduces potential players to gaming associations In the event of revocation of the permit by the and whose participation he brokers on behalf of competent authority pursuant to § 1(1), the operator operators, is granted a period in which to comply again with itsand provided it is done with the intention of making terms. Moreover, in the event of minor infringementssustainable profits from such activity. of § 1(2)-(4), rather than revoke the permit, the(11) “Retailers” and “lottery collectors” are agents that competent authority may issue the operator with aare integrated into the sales organization of operators warning. Further still, in such cases, the provisions offor the purposes of § 6 (2) or § 7 (1), below, who §§ 116, 117 State Administrative Act apply.exclusively broker game contracts for regional lotteries (8) The Ministry for Interior may also enact decreesor class lotteries on behalf of operators. 1. issuing detailed requirements with respect to the(12) The hosting, sale and brokering of gaming for the requisite credibility, potential and knowledge on thepurposes of this Act are considered as gaming “offers”. subject of the intended gaming operations, as well as with regard to the permit authorization and §4 supervisory procedures, especially concerning the Event Permit type, scope, purpose and form, respectively, of the(1)The hosting of public gaming pursuant to this Act required documentation.requires a permit from the competent authority. A 2. Rules relating to the processing of confidentialpermit to host betting on the outcome or progress of information and disclosure of confidential datasporting competitions requires the agreement of an pursuant to this Any hosting, brokering or sale of gaming that is (9) Claims relating to the refund of expenses orhosted without such a permit is forbidden. damages, which arise in connection with changes to European legislation, are excluded. 3/16
  4. 4. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15 §5 pursuant to § 1, notably, the prevention of scams and Sales permit fraud. The federal state itself may also lawfully set up(1) Sales from lotteries with high frequencies of events regional lotteries through legal persons under publicpursuant to § 6 (1) 1, betting or online-casinos in law or through appointed private companies.principle require permits from the competent (3) Accordingly, the Federal State of Schleswig-Holsteinauthority in accordance with the provisions of this Act. has exercised its public right under Paragraph 2, above,The permit shall be refused if the sale of gaming is through the establishment of the NordwestLottocontrary to the aims of §1 or where the applicant is Schleswig-Holstein GmbH & Co. KG (hereinafterunreliable. NordwestLotto Schleswig-Holstein), the quotas in(2) If the hosting of public gaming is permitted under which are totally or predominantly held directly orthis Act and sales do not require a permit according to indirectly by the Federal State.Paragraph 1, the competent authority must be notified (4) Upon agreement with the Ministry of Interior andof the same. The federal state legislation may also Ministry of Finance, the exercise of the right can berequire notification of the sale in the federal state in totally or partly entrusted to legal persons under publicquestion, even if such notification requirement is not law or private companies. In such cases, the Federalrequired under Paragraph 1, above. State and other Federal States can own significant(3) For permits according to Paragraph 1, the quotas directly or indirectly. Moreover, theprovisions of §4 (3)-(9) shall apply. NordwestLotto Schleswig-Holstein can host number(4)The sale of public gaming is forbidden unless permit lotteries and “scratch-and-win/ tear-and-win” lotteriesand notification obligations have been fulfilled under (Losbrieflotterien), as well as additional lotteries andthis Act. other game draws. Section II §7 Approval Procedures Class Lotteries (1) §6 para.(2), sub. 1 applies to class lotteries. Subsection 1 (2) Where the provisions of the State Treaty for State Lotteries Class Lotteries of 26 May 1992 (SCL State Treaty) or Regional lotteries, Class Lotteries the regulations for the North West German Class Lottery from the State Treaty for the North West §6 German Class Lottery (NWGCL State Treaty) of 1 Regional lotteries September 2008 conflict with the provisions of this Act, then the provisions of this Act shall prevail.(1) Regional lotteries are lotteries, (3) By way of derogation from Art. 4 of the SCL State1. which have a high frequency of events (§ 3 Para.(3), Treaty and from § 9 of the NWGCL State Treaty, ansub.3.) or operator permit under § 4 para.(1), above, has been2. which game schedule foresees that the value of the issued by the competent authority for the Classbiggest win is greater than 1 million Euro, or Lottery.3. which game schedule foresees the creation of a (4) The Federal State may host class lotteries jointlyjackpot, so that, with other federal states, or through a public lawa) when, a particular a prize category is drawn and the entity established together with the other federal winnings are not claimed, they can be added to the states or a private company, provided in the latter case following draw, or that the federal state in question or other contractingb) where parts of the payments due from the player federal states have a significant quota, regardless of can be accumulated for the purpose of achieving whether they hold their quotas directly or indirectly. wins at future draws so that a biggest win of over 1 million Euro can be achieved.(2) the organization of regional lotteries is nonethelesssubject to the attainment of the federal state’s aims 4/16
  5. 5. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15 §8 1. the draw results are not announced more than twice Sales permit a week,(1) An application for a permit can be made by the 2. the maximum winnings do not exceed a value ofoperator for sales at sales outlets, EUR 5 million, and(2) Class lotteries sales are subject to notification 3. any payments made by players are not partlyobligations; the consent of the operator also has to be accumulated for the purpose of creating winningsdemonstrated. No claims can be made subsequent to for future draws (planned jackpot).conclusion of a sales contract. §11 §9 Hosting Charitable Lotteries; Brokering requirements Sale of Charitable LotteriesThe following requirements shall apply to sales from (1) An event permit may only be issued if the operator,high event number lotteries by agents (lottery agents): 1. satisfies the conditions of § 5 para. (1), sub. 9 of the1. The lottery agent must forward at least two-thirds of German Corporation Tax Act, andany sums collected from players in order to participate 2. is reliable, in particular by providing a guaranteein a game to the operator. Immediately after the that the event is implemented properly and can bebrokering of a game order, it must inform players in a fully understood by both game participants and theclear and comprehensible manner of the amount competent authority, and that any net proceeds areforwarded to the operator in order to participate in used appropriately.the game as well as notify the operator of any such Paragraph (1), sub 1, above, does not apply toplayers. operators for the purposes of § 6 para.(2) and § 72. Lottery agents and any third parties commissioned para.(1), lotteries operated by the public bodyeither by them or by interested players within the “Bavarian Red Cross”, or to events taking the form ofmeaning of § 3 para.(10), above, must disclose the prize-linked savings (§ 16).brokering of any participation in a game to the (2)If the event is conducted either wholly or mainly byoperator. a third party, then the permit may only be issued if3. Upon conclusion of the contract, lottery retailers there is no risk that the transparency andmust ensure that a trustee qualified within a legal or controllability of the event may be affected, and if thetax advisory profession or a trust company that third partyemploys such professionals is commissioned with the 1. meets with the requirements of Paragraph 1 sub.(2)safekeeping or storage of ticket receipts and the andassertion of winning claims against the operator. Upon 2. is subject to instructions from the operator withconclusion of the contract, the game participant shall respect to conducting the event and does not havebe granted the right to view ticket receipts that were any significant legal or actual influence over thebrokered in their order. operator. (3) the holder of an event permit according to § 10 Charitable Lotteries shall be entitled to sell the lottery. The operator shall not require a special permit according to § 5 para.(1). §10 The notification requirements for sales activities must Permits for charitable Lotteries comply with § 5 para.(2).(1)Lotteries that are capable of ensuring that any netproceeds will be used mainly for charitable purposes §12 Lottery Schedule, Costing and conducting of Eventshall be approved upon application if the permitrequirements are met. The competent authority shall (1) According to the game schedule, the net proceeds,be responsible. winnings and costs must relate proportionally to each; the cost of the event must be kept as low as possible.(2)The permit shall be issued if the game schedule The net proceeds are the amount resulting from theforesees that, sum of any payments received after deducting any costs, winnings and taxes. Provision should be made in 5/16
  6. 6. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15the game schedule for at least 30 per cent of payments The permit shall be issued in writing. It should statereceived to go towards the net proceeds and winnings the following:and on no account should this percentage not be 1. the operator as well as any third parties in the casereached. When an application is submitted, a cost of § 11 para.(2),estimate must be compiled that is based on the 2. type, location or area as well as the start date andexpected costs of the event, winnings, taxes and net duration of the event,proceeds. After issue of the permit, if it appears that 3. the intended purpose for use of net proceeds, thethe estimated costs are likely to be exceeded, then this type and method of proving use and the time in whichmust be notified to the competent authority such proof will be provided,immediately and a new cost estimate has then to be 4. the game schedule andprepared. 5. the sales form.(2) With respect to lottery costs, the nature and extentof any third party costs may only be taken into account Small Lotteries and prize-linked savingswithin the meaning of § 11 para.(2) insofar as they §15meet the principles of economical management. The Small Lotteriesremuneration of third parties should not be calculated The competent authority may depart from theon the basis of the amount revenue received. regulations of this Act for lotteries, in the event that(3) The operator must submit all documentation and 1. the sum of payments to be received does notinformation required to the competent authority in exceed EUR 40,000,order to verify that the lottery has been conducted 2. the net proceeds are used exclusively and directlycorrectly. It must also provide a statement based on for charitable or benevolent purposes, andthe actual amounts of revenue, net proceeds, winnings 3. the net proceeds and winnings amount to at least 25payouts and event costs. per cent of payments received.(4) In order to verify that the lottery has been properlyplanned or conducted, especially regarding the §16appropriateness of costs, the competent authority Prize-linked savingsmay, at the expense of the operator, commission an By way of derogation from § 4 para.(1), prize-linkedauditor to provide their expert opinion or request the savings lotteries operated by a credit institution withinoperator to commission one. The costs of the expert the meaning of § 1 para.(1) of the German Banking Actopinion are considered lottery costs. need only notify the competent authority if a partial amount not exceeding 30 per cent contributed by a §13 participant is used as the lottery ticket share for the Use of net proceeds prize-linked savings lottery, and the net proceeds(1) Any net proceeds from the event must be used for amount to at least 25 percent of lottery ticket sharescharitable or benevolent purposes as specified in the and are used for charitable or benevolent purposes.permit in a timely manner.(2) If the operator wishes to use the net proceeds for a Subsection 2purpose other than the one specified in the permit, or Casinosif the intended purpose cannot be achieved either at Land-based casinosall or in a timely manner, then the operator mustnotify the competent authority immediately thereof. §17Following consultation with the operator, the former Requirements for Casinos, player exclusion, blacklists, data processingmay stipulate a new charitable or benevolent intendedpurpose. (1) Land-based casinos (fixed casino operations) must maintain a comprehensive exclusion system in order to protect players and combat gaming addiction. §14 (2) Land-based casinos shall exclude individuals who Form and Content of Permit ask to be excluded (self-exclusion). Alternatively, individuals who, on the basis of staff observations or 6/16
  7. 7. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15other factual evidence, are assumed to have a gaming (11) Unless otherwise specified by this Act, theaddiction or are insolvent, fail to meet their financial respective provisions for the protection of personalobligations or risk stakes that are disproportionate to data shall apply.their income or assets are also excluded (external (12) By way of derogation from § 4 para.(3) sub.(1), theexclusion). In the event of the external exclusion being first permit issued for a land-based casino shall be for achallenged by the player, the competent authority minimum of eight years.shall decide. Online Casinos (online-casino games)(3) The exclusion is valid for at least one year. Land-based casinos immediately notify the player inquestion in writing of the exclusion. §18 General requirements for Online Casinos(4) Land-based casinos must record all data required (1) Online-casinos games can only be operated withinfor an exclusion onto a blacklist. The data must contain the terms of a permit issued according to § 19 and canthe following: 1. family name, first name, maiden name, only be sold for the purposes permit issued according 2. aliases, any false names used, to § 20. The type and method of playing games shall be 3. date of birth, defined on a case-by-case basis in the permit issued by 4. place of birth, the competent authority. 5. address, (2) Anyone authorized to sell online casino games 6. photographs, according to § 20 must ensure that the General Terms and Conditions of Business appropriately accessible to 7. reason for exclusion, 8. duration of exclusion, and individual players prior to the start of the game, making mention of any valid permits and the 9. the notifying casino. competent issuing authority, respectively. If theA record can also be kept, even if all data cannot be provider is not actually an operator, it must disclose the operator to the player prior to the start of thecollected. Documents leading to the exclusion mustalso be kept. game and ensure the General Terms and Conditions of(5) The cancellation of any exclusion is only possible Business are appropriately accessible.after one year has elapsed, and in any case only upon (3) Anyone already holding a permit to operate a casino in accordance with the Federal state Casino Actwritten request from the player. The land-based casinooperator that ordered the exclusion shall make a is also allowed to be an operator for the sale of online-decision on this. The player’s assurance that the casino games.reasons for his exclusion have ceased must be credible. (4) The sale of online casino games by third parties(6) Excluded players may not take part in any games in requires the consent of the casinos. The ban shall be enforced by (5) The terms of § 17 also apply.checking the player’s ID card or by using a similar §19identity check and comparing with the blacklist. Permit for operators of online-Casinos(7) Any recorded data must be transmitted as required (1) Operators of online-casino games may be approvedto the various authorities authorized to monitor any upon request if,game bans Data transmission can also be carried out 1. they are EU nationals under European Union law orvia an automated retrieval process. are legal entities whose registered office, central(8) Data transmission to public authorities, especially administration or principal place of business falls withlaw enforcement authorities and courts, is permitted the remit of European Union law or of a Signatoryby law. State to the Agreement on the European Economic(9) Any information issued and access to electronic Area, andsystems must be recorded. 2. have the necessary reliability, capability and(10) The data must be deleted six years after the expertise for the intended gaming activity The legaltermination of the exclusion. Deletion is also permitted representatives of legal entities must also satisfy theat the end of the sixth year. 7/16
  8. 8. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15 various requirements regarding reliability and (5) The sales permit shall in particular specify the expertise. operator, as well as the type of casino games and the(2) The permit shall be refused if there is evidence to sales channels.suggest that (6) When submitting an application, the applicant shall1. public safety and order will be jeopardized by the also provide the proposed General Terms and intended gaming activity, or relations between the Conditions of Business. Any amendments thereto must Federal Republic of Germany and other federal states be notified. With respect to distance sales, the will be affected, respective sales channels and the location of the2. by collaborating with third parties, there is a risk to distance sales office must be notified. the overall transparency and the ability to monitor (7) The applicant under Paragraph 1, above, shall sales or any other brokering activity will be provide insurance guarantees to protect federal state prejudiced, or claims and against claims for payouts and. The3. it cannot be ensured that the game will be applicant shall in principle provide the insurance implemented properly and in a way that is fully guarantee in the form of an absolute bank guarantee understood by both game participants and the from a major bank based in the European Union or in a competent authority in accordance with the aims of § Signatory State to the Agreement on the European 1. Economic Area. The guarantee shall amount to EUR(3) When submitting an application, the applicant shall 1,000,000 for the sale of online casino games. It can bealso provide the proposed General Terms and adjusted by the competent authority to an amountConditions of Business. Any amendments must be that corresponds to the expected average gamenotified. revenues over a period of two weeks up to a maximum of EUR 5,000,000. The issue of the permit according to §20 Paragraph 1 is based on the assumption that the Sales permit insurance guarantee has been provided. If the(1) The sale of online-casino games requires a permit guarantee is not delivered notwithstanding remindersfrom the competent authority. for the same, or is inadequately guaranteed, then the(2) The sales permit will be issued if the applicant fulfils permit shall be refused.the requisite reliability and expertise criteria to Subsection 3conduct sales and there are no reasons for refusalaccording to Paragraph 3, below. Betting(3) The sales permit shall be refused if there is §21sufficient evidence to suggest that General Requirements for Betting1. public safety and order will be jeopardised by the (1) Public betting may only be operated by betting event or sale of the event, companies permitted according to § 22. A permit is2. by collaborating with third parties, the overall issued by the competent authority. The type and transparency and the ability to monitor sales or any method of betting shall be governed individually in the other brokering activity will be prejudiced, or permit from the competent authority. Any form of3. it cannot be guaranteed that the event or sale of the betting that violates moral sensitivity is banned. event will be implemented properly and can be fully (2) Public betting may only be conducted to the extent understood by both game participants and the allowed by the terms of the permit issued by the competent authority in accordance with the aims of competent authority according to § 23. Public bets §1. may be sold by the betting companies themselves or by an agent.(4) Insofar as an sales permit has been issuedaccording to § 19, then the reasons for refusal in (3) Anyone who participates in the operation of bettingrelation to the event and the operator of online casino events may neither bet themselves nor place a bet on the outcome or the progress of this event, nor maygames under Paragraph 3 sub.1 or sub.3, above, no they place bets using others. Anyone who intentionallylonger need to be verified. or negligently infringes this prohibition is therefore 8/16
  9. 9. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15acting unlawfully. The offence will be punished by a (3) When submitting an application, the applicant shallfine of up to EUR 100,000. also provide its current General Terms and Conditions(4) The hosting and sale of betting must be kept of Business. Any amendments must be notified.separate from an organisational, legal, financial andstaffing perspective from the hosting or the §23organisation of the betting event. The same applies for Sales permitthe operation of establishments in which betting (1) The sale of public betting requires a permit fromevents take place. the competent authority for both fixed as well as(5) Anyone who sells public bets (§ 23) must inform the distance sales. Provided the competent authority hasplayer of the relevant betting operator prior to the bet already issued a permit according to § 22, then abeing placed. Furthermore, the General Terms and permit for self sales may be issued to the bettingConditions of Business of the bets offered for sale, as company upon request in accordance with thiswell any existing permits and the competent authority provision. This provision does not apply for sales mademust be adequately made known to the player prior to by third parties (agents).placing a bet. (2) The sales permits are granted to applicants who:(6) Anyone who hosts or sells bets must not grant 1. are EU nationals under European Union law or arecredit to betting clients. Bets may be paid for using legal entities. In such case, the registered office,standard credit cards. central administration or principal place of business(7) The terms of §17 are applicable. must come within the scope of European Union law or that of a Signatory State to the Agreement on the §22 European Economic Area, and Permit for Betting Companies 2. have the necessary reliability and expertise to(1) Betting companies may be approved upon request conduct sales; as proof of expertise, the terms of §3if: para.(1) of the rules implementing the Act on Horse1. they are EU nationals under European Union law or Betting and Lotteries shall apply accordingly, as are legal entities. In such case, the registered office, amended on 21 august 2002, and central administration or principal place of business 3. provided there are no grounds for refusal under must come within the scope of European Union law para.(3), below. or that of a Signatory State to the Agreement on the (3)The sales permit shall be refused if there is sufficient European Economic Area, and evidence to suggest that:2. they have the necessary reliability, capability and 1. public safety and order will be jeopardized by the expertise for the intended betting activity. With event or sale of the event, respect to legal entities, the legal representatives 2. by collaborating with third parties, the overall must satisfy the criteria regarding reliability and transparency and the ability to monitor sales will be expertise. prejudiced, or(2) The permit shall be refused if there is sufficient 3. it cannot be guaranteed that the event or sale of theevidence to suggest that: event will be implemented properly and can be fully1. public safety and order will be jeopardized by the understood by both game participants and theintended betting activity, or relations between the competent authority in accordance with the objectivesFederal Republic of Germany and other federal states of § 1.will be prejudiced, (4) Provided there is an event permit according to § 22,2. there is a risk that, by collaborating with third then the grounds for a refusal according to Paragraphparties, the overall transparency and the ability to 3, sub. 1 or sub. 3 in relation to the event and themonitor sales will be prejudiced, or betting company no longer need to be verified. § 223. it cannot be guaranteed that the betting activity will para.(4) applies implemented properly and can be fully understood (5) A sales permit shall specific the authorized to sellby both game participants and the competent bets, the type of bets and the sales channels. Withauthority in accordance with the aims of § 1. respect to fixed sales, the municipalities shall decide in 9/16
  10. 10. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15accordance with town planning regulations on any (2) Each betting company and each holder of a salesrestrictions concerning locations for the purposes of permit for betting must keep an electronic bettingachieving the aims under § 1. book in which all betting transactions are recorded in(6) When submitting an application, the applicant shall consecutive order without any time delays. Thealso provide its current General Terms and Conditions electronic betting book, as well as any computerof Business. Any amendments must be notified. software, data processing procedures and equipmentFurthermore, it must notify the number and location of used for hosting or brokering bets, must be specificallysites for fixed sales, as well as the respective sales protected against unauthorised interference from thirdchannels and the location of the distance sales office parties. All betting transactions must be recorded infor distance sales. the betting book for a period of four years.(7) The applicant shall provide an insurance guaranteesto protect federal state claims and against claims for Section IIIpayouts in the form of an absolute bank guarantee Player Protectionfrom a major bank based in the European Union or in aSignatory State to the Agreement on the European §25Economic Area. For fixed sales, the guarantee Information Obligations 1. in each location (1) The holder of a permit must ensure the following a) in which betting is either exclusively or mainly information is made available to players: sold, or 1. all costs resulting from participation, b) which has more than two betting classes or 2. the amount of all winnings, betting terminals, shall amount to EUR 20,000 3. when and where any winnings are published, 2. in every other location it shall amount to EUR 4. the percentage of payouts for winnings from stakes, 10,000. 5. information on the probability of winning or losingThis insurance guarantee can be adjusted by the as well as the average payouts for the different formscompetent authority to an amount equivalent to the of the gaming,expected average betting revenues over a period of 6. the cut-off time for participation,two weeks. The guarantee shall amount to EUR 7. the method for determining the winner,1,000,000 for distance sales. It can be adjusted by the 8. how the winnings are distributed between multiplecompetent authority to an amount equivalent to the winners,expected average betting revenues over a period of 9. the limitation period within which winners maytwo weeks up to a maximum of EUR 5,000,000. The claim their winnings,issue of the permit under Paragraph (1) is based on the 10. the name of the permit holder as well as theirassumption that the guarantee has been provided. If contact details (address, e-mail, telephone),the guarantee is not provided despite reminders to do 11. the commercial registration number (if available),so or is not adequately guaranteed, then the permit 12. how the player can make a complaint, andshall be refused. 13. the date the permit was issued by the competent authority. §24 Both players as well as authorities must have easy Betting Regulations and Betting Books access to this information.(1) In order to ensure equal treatment of betting (2) The competent authority may grant exceptions tocustomers, the hosting and sale of betting may only be these obligations if the nature of the game or otherdone in accordance with betting regulations that are circumstances make it unreasonably difficult to satisfybinding for all betting contracts from operators or the various conditions.holders of sales permits. This is to be submitted withthe permit application. The betting regulations must §26contain provisions on the conclusion of betting Advertisingcontracts and payouts. (1) The type and extent of advertising of public gaming must be appropriate and must not be in conflict with 10/16
  11. 11. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15the aims of § 1. The advertising must not be 4. allow players to assess their own risk,misleading, nor lead to inaccurate perceptions about 5. set up a telephone counselling service that is jointlythe prospects of winning. Moreover, the advertising operated by several providers,must not be aimed at minors. 6. report to the competent authority every two years(2) The competent authority may also lay down further on the success of any measures implemented forcriteria in the additional clauses of the permit for the player and sales in relation to the composition of (3) Every two years, in connection with thepermitted advertising for lotteries with a high development of assistance measures, the competentfrequency of events, betting and casino games. authority shall draw up a report on the measures taken(3) The advertising of illegal gaming is not permitted. by providers, the safety of gaming and player(4) The Ministry of Interior is authorized to issue more protection activities.detailed regulations on the subject. Section IV §27 Gaming supervision, Permit control and Federal State Protection of Minors, supervision Player Protection and Declarations(1) Minors are forbidden from participating in public §29gaming. Competent Approval and(2) The providers of public gaming are responsible for Supervisory Authorityensuring that players play responsibly. They must The competent Approval and Supervisory Authority forinform the public on the probability of winning and the tasks designated under this Act shall be thelosing, the possible risks of addiction with respect to Ministry on Interior. The Ministry may appoint anotherthe type of gaming offered, the opportunities for authority by enacting a regulation to this effect.counselling and therapy as well as the prohibition onthe participation of minors. §30 Supervisory powers § 28 (1) The competent supervisory authority shall monitor Corporate Social Responsibility compliance with the provisions of this Act, as well as(1) The providers of public gaming are responsible for observance of the rules specified in the permits andensuring that players are discouraged from playing related additional clauses. Accordingly, in individualpathological games and any gaming addiction is cases it may issue orders, as appropriate. In particular,prevented. To this end, they must develop the it may:appropriate social responsibility policies for relative 1. prohibit the hosting and sale of illegal gaming as wellgaming games laying down measures for the as any related advertising,prevention of pathological player behaviour. 2. request information or evidence from event or sales(2)The providers of public gaming shall permit holders that are subject to its supervision in1. appoint representatives to develop social order to fulfil its duties; responsibility, 3. take decisions on any objections to external2. train staff that employed in the hosting and sale of exclusions, public gaming on early detection of problematic 4. following the prior notification of illegal gaming player behaviour, offers, prohibit credit and financial services3. in the context of prevention, provide easily institutions from being involved in payments for accessible and easily understandable information illegal gaming and payouts from illegal gaming in a a) on the relative risks of the games in question; responsible manner. b) on assistance measures, such as player exclusions, (2) Challenges to, and complaints against, orders addresses of counsellors and self-therapy groups for according to Paragraph (1), above, do not have both addicted male and female players; suspensive effect. c) through self-help handouts, 11/16
  12. 12. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15(3) The supervisory authority is responsible for the (2) The Ministry of Interior shall determine the amountissuance and revocation or withdrawal of permits as of the fees by regulation from which chargeablewell as receiving notifications according to § 5 para.(2), services, fees by way of fixed rates or framework rates,unless stated otherwise herein. as well as regulations for increases, reductions, scaling(4) The supervisory authority shall work together with and exemptions can arise. The rates shall be measuredthe responsible authorities for gaming supervision in such a way that so that there is an appropriateboth domestically and abroad in the performance of its balance between the amount taken into account forresponsibilities. administrative expenditure and the importance of the economic value or other benefits arising from the §31 actions of the approvals and supervisory authority. Advisory Committee Moreover, the provisions of the Administrative Costs(1) An Advisory Committee will be set up within the Act shall apply.Approval and Supervisory Authority. It shall advise theapproval and supervisory authority on the §33performance of their duties, especially in terms of the Enforcementlegal and technical aspects of the gaming sector, The supervisory authority may enforce any orders thataddiction prevention, crime prevention and youth and it has made under its statutory powers by way ofconsumer protection, as well as in relation to the coercive measures according to the provisions ofintegrity of sporting competition. It may also issue administrative law, in particular pursuant to §§ 228 etrecommendations on the general development of seq., and 242 of the Federal State Administrative Act.supervisory practices to the management of the In addition, it can threaten coercive measures in eachapproval and supervisory authority. case of non-compliancy. The penalty of up to EUR(2) The members of the Advisory Committee shall be 250,000 may be imposed. The provisions of theappointed by the President of the Approval and Federal State Administrative Enforcement Act shallSupervisory Authority, after consultation with the apply.interested parties. Sports organizations arerepresented and have the right to vote on the Advisory Section VCommittee. Science and research, consumer Dutiesprotection groups, addiction experts, and gamingproviders must all be adequately represented within Subsection 1the Advisory Board. Duty aims(3) The Advisory Committee shall elect a chairmanfrom among its members. The Advisory Board shall §34also adopt its Rules of Procedure. Lottery duty (1) By way of derogation from §35, the NordwestLotto §32 Schleswig-Holstein is liable to pay duty to its federal Fees state. Accordingly, the Ministry of Finance, together(1) For the purposes of this Act, the Approval and with the Ministry of Interior, shall issue Ordinances toSupervisory authority shall charge the following fees determine the duty rate aims taking account of lotteryfor the various tasks assigned to them: laws, business and taxation interests, as well as the1. a fee for handling the application and issue of a maturity date and procedures for the payment of permit for the gaming operator according to § 4 or a duties. The Ordinance may also stipulate that duty for permit for the sale of gaming according to § 5 the NordwestLotto Schleswig-Holstein has to be fully (handling fee), or partly paid over to a third party in accordance with2. an annual fee for expenditure related to supervision, the duty revenue aims. especially for the enforcement of powers according (2) The duty from the Lottery, “BINGO – Die to § 30 para.(1) (supervisory fee). Umweltlotterie” (BINGO) is to be used for the purpose of nature conservation and protection of the 12/16
  13. 13. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15environment, as well as for development projects members of the Hamburg Sports Association may alsodefined by Agenda 21. The Federal Committee for free benefit from its application.Welfare Services, the German Olympic SportsFederation and the German Heritage Foundation Subsection 2receive a part of the duties from the “GlücksSpirale” Gaming DutyLottery, the rate of which is stipulated in Paragraph 2,sub. 1 of the Ordinance. §35(3) After deducting the amounts referred to in Duty liability, Duty aimsParagraph (2), above, firstly, 8 per cent of the (1) For the purposes of this Act, a gaming duty shall beremaining amount, i.e. at least 6,3 million EUR are to levied on individuals that sell used for the promotion of sports and, secondly, 4.9 (2) For the purposes of this Act, gaming sales are madeper cent for the purposes of player insolvency by permit holders authorized under this Act, and whocounselling. have their residence or place of habitual residence in(4) The remainder is then to be used to finance the Federal Republic of Germany. Moreover, thescientific research into the prevention and combating games must be conducted in accordance with thegaming addictions. The remainder is also to be used for regulations. A sale is also deemed to have taken placethe setting up and furthering of information centres for present purposes, when gaming - normallyfor the prevention of and combating addiction. requiring a permit – is conducted in accordance withResearch programmes can be promoted together with the law but without the requisite permit.other federal states. Training in counselling is to be (3) On the contrary, a gaming duty shall not be leviedtaught on the basis of the research findings. on:(5) The remainder is then to be used for charitable 1. lotteries and betting that are subject to taxationpurposes in accordance with the Fiscal Code. under the Betting and Lotteries Act,(6) From the amount set aside in accordance with the 2. land-based gaming subject to casino duty,first option in Paragraph (3), above, 90 per cent is to be 3. game equipment and other gaming opportunitiesused for the Schleswig-Holstein State Sport Federation within the meaning of §§ 33c and 33d of the Tradee.V. (registered association) in the promotion of sport. and Industry Act that are subject to VAT;A further 8 per cent of the amount is to be used for the 4. online-gaming, provided such is subject to VAT.general promotion out-of-school sports activities, (4)§ 40 of the Fiscal Code shall apply accordingly.while the residual 2 per cent is to be made availablefor extracurricular school sports. §36(7) The aim of promoting sport is to, Duty rate, Basis of Assessment1. guarantee the work of sports teams and sporting (1) The duty rate is 20 per cent of the basis of associations and put them in a position to offer a assessment. wide variety of representative sports throughout the (2) The basis of assessment is the gross profit from federal state, and gaming that has been offered and played. The amount2. guarantee the availability of activities and projects by which the total of all stakes exceeds the total of all for schools in collaboration with sports teams and winnings paid out shall be deemed to be gross profit. sporting associations, as well as extracurricular sports By way of derogation from therefrom, for gaming in activities. which the operator does not assume any risk (games(8) The donation to the Schleswig-Holstein State Sport without a banker), the amounts accruing to the gamingFederation e.V. is made available in particular for the provider from the game are taken as the basis ofwork of federal state sporting associations, their assessment.facilities, sports teams, sporting circles and (3) To the extent municipalities can levy anprofessional sporting associations for both competitive entertainment tax under applicable federal stateand recreational sports. Sports teams that have their legislation, then this must be deducted from the basisregistered offices in Schleswig-Holstein but are actually of assessment. 13/16
  14. 14. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15(4) §§ 90 and 162 of the Fiscal Code shall apply 6.details on the technical equipment provided for theaccordingly. If the basis of assessment according to calculation of stakes and pay out of winnings, andParagraphs (2) and (3), above, cannot be reliably 7.details on any other registration with the taxdetermined even in the form of estimates, then the authorities of other federal states and other Memberrespective stake shall be deemed to be the basis of States of the European Union or the Europeanassessment. Economic Area. (3)A further condition for registration, in addition to §37 the comprehensive and accurate provision of Accrual of duty information under Paragraph (2), above, is that the(1) The duty shall accrue upon completion of the game technical equipment according to Paragraph (2), sub.6,contract. If the gaming provider either wholly or above, must satisfy the requirements for duty recoverypartially collects the stake prior to the completion of according to § 40.the game contract, then the duty shall accrue upon (4) Any changes to data that are relevant forcollection by way of derogation from para.(1). registration and duty recovery must be notified(2) If a game contract is withdrawn and the stake is immediately to the responsible tax authority.either wholly or partially refunded, then the duty shallalso be revoked to the same extent. § 40 Duty recovery §38 (1) The gaming provider must determine the total Duty debtor amount of stakes and the basis of assessment(1)The gaming provider is considered to be the duty according to § 36 of all gaming conducted separatelydebtor. Anyone who offers gaming without the on a monthly basis by gaming type, and moreover,necessary permits is also liable to pay duties. must submit the allocated gaming duty using an(2)Anyone who collects payment for gaming in officially prescribed dataset to the responsible taxconnection with the performance of a game contract authority in accordance with prior duty datashall be liable to pay duty without being a duty transmission regulations and pay the duty (advancedebtor. Duty debtors and parties liable to pay duty are payment). The transmission of data and the paymentjointly and severally liable. of the corresponding duty must be made no later than the tenth day of the following month in question. § 39 (2) The gaming provider must submit an annual Registration declaration for the calendar year on an official(1)Gaming providers must register with the responsible prescribed form to the responsible tax authority notax authority in order to fulfil their duty obligations. later than 31 May of the following year. This mustRegistration must take place prior to the start of the include the total amount of stakes and the basis ofgaming activity. assessment according to § 36 of all gaming conducted(2) For the purposes of registration, information shall separately by gaming type, the corresponding gamingbe provided on the following items by the gaming duty levied as a result for the calendar year as well asprovider: any advance payments made according to of gaming provider, (1). Any outstanding tax payable or possible credits2.the place of residence of individuals, or for legal from the annual declaration shall be determined and entities the registered office of the gaming provider, notified officially by the responsible tax authority. both with full signature, (3) For tax purposes, foreign currency values must be3.the names of all legal representatives and registered converted for the calculation of duty according to office of the management for legal entities with full applicable VAT provisions. signature,4.details on the types of gaming to be offered,5.details on whether land-based gaming, online- gaming, or both are to be offered, 14/16
  15. 15. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15 §41 §45 Duty aim Notifications to the competent authorityDuty is levied for the purpose of achieving the aims set (1) If the responsible tax authority investigates a partyforth in § 1. In particular, through the interaction of on suspicion of a having committed a tax offence or taxthe various provisions regarding permit procedures irregularities with respect to the gaming duty, then itand player protection, the gaming demand of the must notify the competent authority thereof andgeneral population should be guided towards lawful inform them of the outcome of proceedings.and supervised gaming offerings, and stem the (2) If the responsible tax authority obtains furtherexcessive expansion of gaming offerings by noticeably information on unauthorised gaming or theirreducing the profit incentives to providers. brokering, it shall also notify the competent authority of the same. §42 Duty revenue §46(1) All and any duty revenue shall accrue to the Federal Filing and record-keeping obligationsState. (1) Gaming providers must keep records of all gaming(2) It must guarantee that a significant proportion of conducted within the scope of this Act which must bethe duty revenue serves the purpose of financing the independent of any accounting and recordingaim set forth in § 1, as well as objective of promoting requirements based on other laws; the informationpublic and favourable tax regime within the meaning required for levying gaming duty can then be consultedof the Fiscal Code in accordance with federal state law. in the said records. In particular, as regards online-By way of derogation from Paragraph (1), above, up to gaming, it must ensure the origins of players can beone third of duty revenue from sports betting shall reliably identified and the principles for the dutyaccrue to the Sports Association of Schleswig-Holstein recovery for gaming in which individuals participate -for the purpose of promoting the integrity of whose residence or habitual domicile falls under thecharitable sport. Moreover, it must also guarantee that scope of this Act - can be recorded. In this respect, the5 percent of the revenue from online-gaming offers is provisions on money-laundering should be borne inused for the purpose of financing gaming addictions mind.and debt and insolvency counselling. (2) §§ 145 to 147 of the Fiscal Code shall apply accordingly for the general requirements for the filing §43 and the storage of documents. Responsible Tax Authority (3) The special requirements and technical conditionsThe responsible tax authority for registration under § for compulsory records, particularly those relating to39 and duty recovery procedures under § 45 is the electronic records for online-gaming, shall beKiel-Nord tax office. determined in an ordinance by the Ministry of Interior. §44 §47 Notification obligations Inspection(1) The competent approval and supervisory authority (1) In order to ensure a uniform assessment andmust notify the responsible tax authority of the recovery of gaming duty, the entrusted officials of thecontent (including additional clauses and responsible financial authority may have access to thesupplementary orders), modification, revocation or sites and premises of duty debtors pursuant to § 38withdrawal of permits as well as of the results of their during business and working hours without priormonitoring activities regarding duty recovery. notice and not in connection with an external audit.(2) Authorities that wish to obtain further information Such access is intended to determine any issues thaton unauthorised gaming must also notify the may be significant for duty recovery (inspection). Livingresponsible tax authority thereof. areas may only be entered against the will of the(3) The content and scope of notification requirements owner to prevent any urgent threat to public safetyare determined by an ordinance of the Ministry of and order.Interior. 15/16
  16. 16. Schleswig-Holstein Gaming Act - 20 October 2011_ (Schl.-H.) II, Vol. Nr. 2186-15(2) Provided such access is useful for duty recovery, Governorthe parties concerned by the inspection shall produce *any records, books, commercial documents and other Klaus Schlie Rainer Wiegarddocuments related to the issues under inspection to Interior minister Financethe entrusted officials, as well as provide information. Minister(3) If the findings of the inspection so require, an ______________external audit may then be required under § 193 of the * GS Schl.-H. II, Gl.Nr. 2186-13 (GVOBl. Schl.-H. =Fiscal Code without any prior audit arrangement (§ 196 Schleswig-Holstein Gazzette of Laws and Ordinances)Fiscal Code). The transition to the external audit shallbe notified in writing.(4) If circumstances arise during the inspection thatmay be relevant for the assessment and recovery ofother duties and taxes, then an assessment of thefindings shall be made, to the extent that knowledgethereof may be of relevance to the taxation of partiesnamed in Paragraph (1) or other parties.(5) The tax authority shall be empowered on the basisof Directive 2010/24/EU, 16 March 2010, to appeal tothe responsible authorities of Member States of theEuropean Union for administrative assistance in therecovery of claims relating to the gaming duty and anyrelated ancillary services. Section VI Temporary and final provisions § 48 Temporary provisionsPermits under this Act shall take effect from 1 March2012. Gaming duty under this Act will be levied from 1March 2012. Until 29 February 2012, the provisions ofthe State Treaty on Gaming in Germany (GlüStV AG) of13 December 2007 (GVOBl. Schl.-H S. 524) shall apply,unless they are contrary to this Act. Claims andlegitimate expectations cannot be established until 29February 2012. § 49 Entry into force, terminationThis Act will enter into force on 1 January 2012. TheState Treaty on Gaming in Germany (GlüStV AG) of 13December 2007 (GVOBl. Schl.-H. S. 524)*) willterminate on 1 March 2012.This Act is hereby executed and is to be published.Kiel, 20 October 2011 Peter Harry Carstensen 16/16