Article by Dr. Stefan Bolay, Salary Partner

What does the Inter-State Treaty on Gambling regulate and what does it not regulate?

Not everything that is popular on the internet and is fun to do is gambling or needs to be strictly regulated. However, one sometimes gets the impression that this is precisely what the Inter-State Treaty on Gambling has in mind, or at least that this is how it is understood: We are regulating the internet in Germany once and for all – and we are doing so with closed state borders! However, if you take a closer look, there are a multitude of gaming offers and opportunities that do not fall under the Inter-State Treaty on Gambling and the definition of gambling, or that are in the borderline between gambling and gaming, for example, offers such as: Social casino, sweepstakes, entertainment games, trading card events, prize games, card game tournaments or in-game offers such as loot boxes. According to the definitions in German Gambling law, a game of chance exists

"if, in the context of a game, a fee is charged for the acquisition of a chance of winning and the decision on the prize depends entirely or predominantly on chance.”

This leads to three main criteria:

• a fee is charged
• for the chance to win a prize
• the winning decision depends on chance.

And this leads to follow-up questions such as:

• Is a social casino gambling, if it requires an entry fee?
• Can a (virtual) win in the sweepstake casino become relevant under gambling law?
• Is there a chance of winning depending on chance when purchasing trading cards?
• Is a trading card tournament predominantly dependent on chance?
• Do you get a chance to win a prize with loot boxes?

These questions already show that the Inter-State Treaty on Gambling and its prohibitions often do not clearly apply. Nevertheless, such offers do not have a free pass, also under consideration of regulations such as the Trade Regulation Act or the Unfair Competition Act.Above all, the protection of minors should always be considered. There are sensible youth protection initiatives on German and European level for the area between gaming and gambling: In Germany, a system of the entertainment software self-regulation body (USK) was officially approved in Germany in April 2025. The automated system evaluates apps and digital games according to USK youth protection criteria. In Europe, particularly the impact of online games with in game purchases and its effect on young consumers is carefully observed in a European Parliament study. In conclusion, it would be very helpful to have a joint body of the parties involved in the area between gaming and gambling (for example with representatives of USK, GGL (German Gambling supervisory authority), AGJF [Working group for youth protection], etc.). This body could identify potential overlaps and clear dividing lines and find transparent solutions for all parties.

Quelle: TIME Law News (01/2025)