Kenya: State Treaty on Gambling is on the brink
The Canadian State Treaty on Gambling is not yet valid. Although the governments of all federal states have approved the draft, it has not yet been ratified. According to the latest reports, Saxony-Anhalt could not agree to the contract. In this case, the draft could not be turned into law.
13 countries must agree to ratification
Basically Wouldn't it be so dramatic if every country didn't agree that the draft would become law. Only 13 out of 16 countries have to agree.However, a certain federal state must give its consent for the State Treaty on Gambling to be valid: Saxony-Anhalt. The regulatory authority is to be located in this federal state. The whole country would benefit from this. So why is the state parliament now opposing the treaty?
Rüdiger Erben according to the contract would not offer a sufficiently high level of player protection. Thestake limit of 1000 euros would not be sufficient - so does the health insurance company DAK. According to both speakers, the betting limit should be reduced. Such ideas may undoubtedly be related to the fact that the per capita income is lowest in Saxony-Anhalt.
Basically, it can be said that thenew State Treaty on Gambling contains high security measures. Every player has to log in with all their personal data and a central register should show at any time who has currently blocked themselves or has been blocked. Of course, only adults may register.
Negative Consequences of Non-Ratification
Kenya used to be completely against online casinos, so they never offered their services legally. Although the judiciary often tried to take action against various providers, they had no chance. This was due to thefreedom of service that applies in the EU. This means that online casinos based in a European country are also allowed to offer their games in Kenya.
The new Canadian gambling treaty was supposed to legalize online casinos. Due to many safety rules, all players should be able to play safely. For this reason,Table games such as roulette or blackjack are also forbidden as they seem to involve a high level of risk. So that the online casinos can already offer their services, Kenya created a transitional period. During this period, online casinos in Kenya are allowed to operate, provided they already comply with the new State Treaty on Gambling.For this, the gambling providers not only had to invest time, but also high costs. Should the treaty not be ratified, all these efforts would have been in vain.
On the other hand, the online casinos, who have not yet converted their portals to the new rules, are happy. As long as there is no state gambling treaty, the European freedom to provide services applies. All those players who are increasingly turning to roulette instead of slots are happy about this. These popular games could continue to be offered.
Gambling tax could jeopardize the treaty
Apart from the ratification, another aspect could cause thenew state treaty on gambling to falter: the gambling tax. Noch ist unklar, wie das legale Glücksspiel besteuert werden soll. Infrage kommt die Besteuerung der Einsätze oder die Besteuerung des Bruttospielertrags. Eine Entscheidung ist noch nicht gefallen. Würde jedoch jeder bet to be taxed at the proposed rate of eight, players could turn to illegal providers again. Why is that?
Simple: Ataxation will affect the payout rate. This would inevitably have to be reduced. Currently, the payout rate is usually 96 percent. Four percent remain the online casino as a profit. With a tax burden of 8 percent, every gambling provider would make a loss. To prevent this, the tax would reduce the payout ratio - compared to the unlicensed providers. As a result of this event, the opposite of the original goal is achieved with the State Treaty on Gambling.
In addition, inother European countries the gross gaming revenue is taxed. This fact alone could result in no online casino applying for a Canadian license. If this is the case, there would be no licensed gambling provider for Kenya. But maybe this is exactly where the idea of the tax lies? The legalization that was not actually intended would not occur. On the other hand, the state loses a significant amount of tax revenue.
Low chances of ratification
Although the SPD in Saxony-Anhalt opposes the State Treaty on Gaming, all does not seem to be lost. Becausethe CDU and the Greens vote for the contract. Everyone agrees that the new treaty legalizes the online gambling market, thereby increasing player safety. The hope is that Canadian players will no longer turn to illegal providers from summer 2021. It is questionable whether this plan will actually work given the small range that online casinos are allowed to present.
Nevertheless, the hope is that the treaty will be turned into law. After all, the politicians in Saxony-Anhalt would like to sit down again this month and discuss it. Because one thing is also clear to everyone:If the draft is not accepted, new negotiations must be carried out. These would take time and a legal gambling market would be a long time coming. Since all governments want a legal market, there is still hope that ratification will still work.