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Entain to Lead Online Poker's Legal Introduction in Germany

Entain has made an impact on the German online gaming sector. They've secured licenses to provide online slot games and are now the first company to do so.

SymClub
Jun 13, 2024
2 min read
Newscasino
The German flag flies outside the country’s Reichstag Parliament building. The online gaming space...
The German flag flies outside the country’s Reichstag Parliament building. The online gaming space is expanding as Entain received licenses to operate online poker.

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Entain has left its imprint on the German online gaming scene. Previously holding licenses for online slots, it is now the first operator to receive a license for online poker.

The journey to this point has taken over a year. Prior to this, only online sports betting was allowed, with a plethora of platforms scattered across the country. Consumers remained without legal options for other pastimes, including roulette and blackjack.

That is about to change. The State Administrative Office (SAO) of Saxony-Anhalt has granted five licenses to Entain. These licenses will enable it to offer online poker via the Bwin and Ladbrokes brands.

Movement Forward in Germany

These are the first two internet poker licenses issued by the SAO since Germany sanctioned new gaming regulations last year. The office is authorized to issue all online gaming licenses within the country.

The new licenses will be valid for a span of five years, in addition to Entain's existing permits which allow online sports betting in Germany under each brand.

Bwin, Ladbrokes, and Sportingbet - all operated by Entain - will be able to offer a variety of games across the country thanks to the other three licenses. This puts Bwin and Ladbrokes in a favorable position, with a greater variety of games, against the competition in many German states.

However, not all Germans can join in. Saxony, a German state, has a monopoly over its gaming market, and its state-owned casino, Sachsische Spielbanken, controls the online space.

Sachsische Spielbanken received a license from the SAO this month to offer online slots. The company also manages the state's land-based casinos.

Uphill Battle in Australia

Entain may be blazing new trails in Germany, but it is encountering legal issues in Australia. The company recently disclosed an advertising partnership with clubs and bars in New South Wales (NSW), prompting resistance from Tabcorp.

The Sydney Morning Herald reveals that Tabcorp has initiated legal proceedings against Entain over a deal it struck with the NSW Australian Hotels Association (AHA). The arrangement permits Entain to advertise its products at member pubs and hotels.

Tabcorp is also suing the AHA's NSW division, asserting that the organization and Entain failed to disclose the nature of the partnership before finalizing it. This might contravene the "Unlawful Gambling Act of 1998". For the deal to receive approval, Tabcorp had to agree to it.

Tabcorp is the only bookmaker authorized to operate retail betting in the state's hotels and pubs. This stems from a long-term agreement that expires in 2033. In their court filings, Tabcorp contends that were it aware of Entain's advertising plans prior, it would not have endorsed the agreement due to its exclusive rights arrangement with the AHA.

Tabcorp has the potential to impose penalties on Entain should it not alter its advertising strategy in conjunction with the AHA. This could theoretically result in monetary compensation claims against both Entain and the AHA.

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