Germany: Malta’s opinion slows down the approval of new rules to combat illegal gambling
Last July, Germany submitted a draft law to the European Commission aimed at amending the State Treaty on Gambling 2021 (GlüStV 2021). The proposal seeks to strengthen national measures against illegal online gambling. However, the initiative has met an unexpected hurdle: Malta’s reasoned opinion, which has effectively delayed the approval process.
Malta’s intervention forces Berlin to provide further justification. By 10 November 2025, Germany must demonstrate that the proposed amendments comply with EU treaties, particularly regarding the free provision of services and cross-border competition.
Background: from GlüStV 2021 to its first revision
The GlüStV 2021, which came into force on 1 July 2021, represents the cornerstone of Germany’s gambling regulation. It was designed to harmonise a fragmented market after years of inconsistent regional approaches across the Länder.
Following a comprehensive review at the end of 2023, the German government drafted a package of updates designed to rectify operational shortcomings, introduce new enforcement tools, and improve administrative efficiency within the Gemeinsame Glücksspielbehörde der Länder (GGL) – the Joint Gambling Authority of the federal states.
The central aim of these changes is to strengthen Germany’s capacity to combat illegal gambling offers, while facilitating data exchange and international cooperation among regulators.
IP and DNS blocking: A sharper weapon against illegality
One of the most significant updates concerns the legal basis for IP blocking, as set out in §9 of the GlüStV 2021. Under the revised text, the requirement of “direct responsibility” is removed, thereby extending enforcement powers to Internet access providers.
This means that regulators will now be able not only to remove illegal content but also to completely block access to unlicensed websites. Among the technical tools authorised is Domain Name System (DNS) blocking, which prevents access to specified domain names.
While the reform strengthens enforcement capabilities, it also raises concerns about proportionality and digital freedom – issues that have been repeatedly highlighted by European case law. It is precisely on this point that Malta has focused its objections, warning that such measures could interfere with the legitimate operations of EU-licensed gaming companies.
Extending investigative powers and international cooperation
Another key feature of the reform is the extension of investigative powers to include foreign police and security authorities. The intention is to allow deeper background checks on licence applicants, many of whom belong to international corporate groups.
Until now, the German authority could only consult domestic agencies. The new framework enables cross-border data exchange, recognising that gambling is a global industry. This approach, however, introduces new challenges concerning data protection, jurisdiction, and legal consistency.
The reform also enhances cooperation between the supervisory authorities and the Financial Intelligence Unit, creating a more robust network for preventing fraud, money laundering, and gambling-related crime.
Access credentials and blacklists: transparency and accountability
Among the more technical adjustments, the draft law clarifies that comparisons with the blacklist of unlicensed sites must be carried out only via the official access credential assigned to each operator’s physical office or online domain.
The sharing or third-party use of these credentials will be explicitly prohibited, and administrative sanctions will be strengthened to ensure compliance. This rule aims to guarantee traceability and direct accountability, making it easier for regulators to identify the source of any illegal activity.
Although procedural in appearance, this measure plays a critical role in maintaining market integrity. By linking access credentials to a unique identifier, the GGL can prevent intermediaries from masking the true origin of gambling operations, improving transparency and oversight.
GGL Governance: efficiency and confidentiality at the core
The amendments also touch upon the internal governance of the GGL, the central body coordinating gambling regulation across Germany’s federal states.
The revised §27h introduces a financial threshold of €100,000, above which the GGL Board must approve any contractual decision, regardless of its duration. Previously, the rule required board involvement only for contracts lasting five years or more, without reference to monetary value.
This change serves a dual purpose: to avoid overburdening the board with minor matters and to ensure oversight of significant financial commitments.
A further clause mandates the confidentiality of board meetings, protecting internal deliberations from external influence and ensuring impartial decision-making. In addition, the process for auditing GGL’s annual accounts will be simplified, assigning oversight exclusively to the Ministry of the Interior of Saxony-Anhalt and the regional Court of Auditors, thereby reducing administrative complexity.
Balancing security with market freedom
From a policy standpoint, Germany’s proposal seeks to enhance the integrity of the gambling system and protect consumers from illegal operators. Yet Malta’s objections highlight the tension between national regulatory autonomy and the EU’s single market principles.
As home to many EU-licensed iGaming operators, Malta fears that the new German rules could create indirect barriers to the free provision of services. Blocking or restricting access to platforms licensed in other member states could, in practice, amount to a trade restriction, violating EU competition law.
This dispute, which mirrors ongoing debates across Europe, may reignite discussions on the need for an EU-wide framework to balance security, consumer protection, and fair competition within the digital gambling sector.
Germany’s defence: “A measure in the public interest”
Berlin, for its part, insists that the proposed measures are consistent with the public interest in safeguarding health and social order. The federal government argues that the unregulated gambling market remains a tangible threat to consumer safety, particularly for vulnerable players and minors.
According to the GGL, the amendments are necessary and proportionate to ensure effective supervision and to combat unlicensed operators. The challenge will be convincing the European Commission that these actions do not constitute discrimination or unjustified market restrictions.
Outlook and next steps
Germany now has until 10 November 2025 to respond formally to the European Commission. Only after this deadline can the legislative process resume at the national level.
In the meantime, the dialogue between Berlin, Malta and other EU member states – each with its own regulatory stance and commercial interests – could pave the way for a broader European consensus on how to govern online gambling.
In any scenario, the German case stands as a crucial test for the Union as a whole, exposing the delicate balance between national sovereignty, player protection, and the economic freedoms guaranteed by EU law.
Malta’s opinion is more than a procedural delay – it is a political signal, reminding Europe of the need for coherence between market freedom and public safety. While Germany defends its right to enforce tougher controls against illegal gambling, the European Commission must now navigate a complex balance between security, consumer protection, and fair competition.
As online gambling continues to expand across borders, the outcome of this regulatory standoff could shape the future of European gambling policy, setting new benchmarks for transparency, cooperation, and the limits of national authority.
This article was first published in Italian on 13 October 2025.
All roads lead to Rome, 03–06 November 2025. SiGMA Central Europe takes centre stage at the Fiera Roma, uniting 30,000 delegates, 1,200 exhibitors, and 550 speakers. This is where legacies are built, and the future takes shape. Connect with the innovators’ driving change.
