Affiliate company shares perspective on the proposed amendments to the German State Treaty

The German online gambling market is the second largest in Europe, behind only UK. Revenue rose by 21% in 2019 and it has garnered the attention of all the major players in the iGaming industry the last couple of years. But the recent attention hasn’t been all that positive, as they proposed new amendments to the State Treaty that could become a reality as of July 1st 2021. Loud criticism has been heard from the likes of affiliates and media firms, as well as operators.

If the suggested amendments to the State Treaty were to pass, affiliates could lose significant amounts of income from the German market. The suggestions contain heavy restrictions on advertising which basically rules out the affiliate business model. In addition, a monthly deposit limit of €1000 for all players were also proposed. 

Stockholm-based affiliate company Leadstar Media consider Germany as one of their main markets, where they operate MySportwetten.de. CEO Eskil Kvarnström shared his insights on the current situation in Germany.

– When I first heard that a new regulation was on the way in Germany I was positive. I think a regulated market is a good thing for the everyone involved, operators, affiliates and not least the players. 

What do you think about the amendments to the State Treaty that are now proposed?

– I’m not in favour of the current proposal, I think affiliates plays an integral part in the online ecosystem, regardless of industry. We serve a purpose not only to drive traffic to our partners, but to inform and educate players. Objective information must be available to the players in a sound market.

Do you think the affiliate role has been diminished by the lawmakers?

– I don’t know if it’s on purpose or not, if they know the value we bring to the industry. We scrutinize the operators and help players chose a licensed, trusted and safe company to play with. We help raise the standard in the industry, operators know that they will be the target of investigation which make them think twice about how they conduct themselves towards players. I think this should be the backbone of a healthy and regulated market that honours player protection and a safe gambling environment.

What can you do to help the regulators rethink this?

– We and our industry colleagues have to get our perspective out there in front of the right people. That is something we are seeing now, with EGBA and Vaunet raising their voices against these amendments. Ultimately I think it will be reworked and that affiliates will have its place even in the future.

Have it impacted your German-faced products and are you planning any changes?

– We constantly make changes to improve our products and the German market have been subject to some interesting changes lately. Not long ago we had the PayPal situation which we had to adapt to, for example. We have seen some of our partners drop out of the market as well, which we have had to deal with. But we will wait and see where all of this lands before we make any drastic changes to our current strategy. Much can happen before July 2021.