Are the Paradise Papers a genuine exposé or merely a tempest in a teapot?
Once again, leaked documents have become headline news. The "Paradise Papers" are a result of research by the International Consortium of Investigative Journalists (ICIJ), similar to the Panama Papers from 2016, and contain information about offshore transactions of wealthy individuals and companies. The revelations about online gambling in Germany have also caught attention due to these publications. But are there any new findings?
The Paradise Papers are based on several million files from Appleby, a law firm on the Isle of Man, and detail how they helped international corporations and wealthy individuals avoid tax obligations. German media outlets like WDR, NDR, and Süddeutsche Zeitung are continuing to investigate the case, which includes the naming of German banks and Gauselmann - renowned for their Merkur slot machines. They are accused of being involved in illegal online gambling, with the banks alleged to have systematically supported it. The accusations against Gauselmann are based on documents proving their cooperation with Appleby in establishing Edict Egaming IoM Limited, a company used to distribute online versions of their games, allowing them access to illegal online casinos according to tagesschau.
However, this seemingly shocking discovery has been known for a while. Gauselmann purchased Edict Egaming from a state-owned Hamburg casino in 2008 to digitize their games, which have been available in online casinos for several years. The issue lies more in the oversimplified media presentation of these connections. The allegation that online gambling itself and these activities are illegal is false. While it is true that obtaining a license in Germany is not possible, games and casinos often have valid European licenses that rely on the freedom to provide services within the EU. Furthermore, Gauselmann does not operate the games directly - they sell licenses to other companies, making them only indirectly involved.
The German authorities have known about these activities for years and dismiss any "involvement" as likely to have only moral implications. Gauselmann itself claims this in a statement, stating that while inactivity on the part of the authorities does not mean legality, it does showcase the complexity of the situation. The media presentation gives the impression that something known to experts and authorities is being artificially blown into a scandal.
Similarly, the accusations against the banks are misdirected. The banks themselves don't know which gambling providers are legal or not, as some have old licenses from Schleswig-Holstein, some do not have a German license at all, and others are still in the process of obtaining one - which has been stalled for years. Providers would only be excluded from payment transactions if requested by the banking supervisory authority, but this has not happened. When asked, the institute referred to the responsible federal states, who are waiting for a list of legal providers to act accordingly. NDR contacted the Lower Saxony Ministry of the Interior for information about such a list and received a response that none existed and there were no plans to create one.
The Paradise Papers only illustrate the symptoms of the problem with German online gambling; they may also reveal morally questionable behavior, but the underlying disease is political inaction in providing coherent legislation. While there are licenses and bans, neither is consistently implemented, resulting in a chaotic situation that harms both companies and consumers. There is a lack of effective consumer protection for online gamblers due to the failure to regulate what is prohibited. The unwillingness of legislators to accept the reality of gambling, especially digital gambling, has led to the rapid expansion of the industry that journalists are now investigating. The information from the Paradise Papers highlights the systemic issues in German online gambling - not just specific companies or banks.
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Source: www.onlinecasinosdeutschland.com