Recently, the German state of Schleswig-Holstein has liberalized its regulations.
The remaining 15 German states signed a deal under which the gambling regulations will be more restrictive. This not only led to criticism in the gaming industry, but also the European Union is investigating whether the restrictions comply with free market rules by favoring state monopolies.
The gaming companies which will operate in Schleswig-Holstein will be subject to 20% tax on gross profits. Betfair alone is expecting to pay around $5 million dollars annually to the German state. Allowing online sports betting in Germany is expected to eat into illegal betting market, which is estimated to be around $6-7 billion dollars.