Successful applicants receive an initial five-year operating term, with potential seven-year renewals for operators maintaining flawless compliance records. This contrasts sharply with shorter 1-3 year terms common in other EU jurisdictions. The GGL may conduct unannounced audits at any point during the licence period, with material violations triggering immediate suspension proceedings. Licensees must submit renewal applications at least 12 months before expiration, initiating another full-scale review process.

Non-EU ownership is permitted provided the operator establishes an EU/EEA legal entity (typically a German GmbH) and appoints at least one EU-resident director. However, all ultimate beneficial owners (UBOs) holding >10% shares undergo enhanced due diligence lasting 8-12 weeks, including: Notarized criminal record checks from all countries of residence over the past decade; documented proof of gambling industry experience; and comprehensive financial solvency reviews. Ownership structures involving high-risk jurisdictions (as defined by German AML regulations) face additional scrutiny adding 4-6 weeks to the approval timeline.

At least one executive director must be an EU/EEA resident with professional German language proficiency (CEFR Level B2 minimum). The GGL’s director suitability assessment takes 10-14 weeks, examining: 10-year employment history with verification of all previous gambling sector roles; personal creditworthiness checks; and in-person interviews with German regulators. Non-resident directors require special approval demonstrating monthly physical presence in Germany, with the exception process adding 6-8 weeks to overall licensing timelines.

While no statutory minimum capital exists, operators must demonstrate liquidity to cover: The €5 million security deposit (held in a blocked German bank account); 12 months of operational costs including the 5.3% stake tax obligations; and player liability reserves equivalent to three months of average payout volumes. Financial audits must substantiate these capacities through: Three years of historical financials (for existing operators); or detailed five-year projections (for new market entrants) – a process typically requiring 4-6 months of preparatory work with German-certified accountants.

Licensees incur three mandatory levies: The 5.3% tax on stakes (not revenue) for slots, poker and sports betting, payable monthly by the 15th day of the following month; Municipal trade taxes averaging 14-17% on profits, with annual filings; and 19% VAT on ancillary services. Operators should note the stake tax applies to gross gaming stakes regardless of profitability, creating unique cash flow considerations that typically require 3-6 months of financial modeling during the application phase.

German licensees must implement geo-blocking for: Jurisdictions prohibiting online gambling (e.g., most US states outside New Jersey); markets where secondary licenses are required but not held (e.g., France, Netherlands, Switzerland); and GGL-designated high-risk AML territories (currently including Belarus, Pakistan, and Cambodia). Compliance requires real-time IP verification and payment source checks, with system testing during the technical audit phase lasting 8-12 weeks. Violations trigger fines up to €500,000 per incident.

Six core systems must be operational before launch: The LUGAS monitoring platform for deposit limits (integration requires 12-16 weeks); OASIS self-exclusion registry (8-10 week setup); ISO 27001-certified data centers within Germany/EU (certification takes 6-9 months); GGL-approved addiction prevention algorithms (4-6 month development cycle); German-speaking customer support teams (must be staffed before final approval); and pre-approved responsible gambling messaging (translation and approval requires 8-12 weeks).

The primary legislation comprises: The GlüStV 2021 (Federal Law Gazette I p. 691, amended 2023); GwG (AML Act); and state-level casino ordinances. These are published on the GGL portal (www.ggl.de), with supporting technical guidelines updated quarterly. While unofficial English translations exist, only the German-language versions hold legal validity. Operators typically require 3-5 months to fully analyze and implement all requirements with specialized legal counsel.