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German gambling providers have bad luck in disputes with states

German gambling operators have fared poorly in disputes with states over where to operate.

SymClub
Apr 26, 2024
3 min read
Newscasino
Berlin's Reichstag, seat of the country's parliament. German federal states reject claims from...
Berlin's Reichstag, seat of the country's parliament. German federal states reject claims from gambling providers over distance rules.

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German gambling providers have bad luck in disputes with states

An administrative court in Germany has certified that European Union (EU) law does not take precedence over local law. Two courts, one in Berlin and one in Dusseldorf, dismissed lawsuits from gambling operators who argued that local laws breached existing EU agreements.

In both cases, the controversy revolves around the required distance between game objects. While the plaintiffs in the lawsuit have not yet been identified, the results span the entire gambling spectrum.

This is not the first time gambling operators have tried to claim that German laws breach EU law. However, the response from both courts made it clear that the country's legal system will operate according to its own rules.

Berlin asserts itself

The legal minimum distance between the Berlin State Sports Betting Office and existing playgrounds is 500 meters. This is consistent with how the state has advanced its gambling laws following the implementation of the Fourth Interstate Gambling Treaty.

The state Office of Civil and Regulatory Affairs (LABO) cited the provision in rejecting numerous applications from gambling providers. They have tried to operate betting shops in smaller distances from existing playgrounds.

The operators tried to get Berlin to change its stance. On the one hand, they claim that the licenses granted to their respective arcades under the Arcade Act and the National Gambling Treaty are valid. In addition, LABO shall issue business licenses to the corresponding gaming brokers.

In particular, they noted that minimum distances are not necessary to protect minors and players. They are also unconstitutional and contrary to European law, putting sports betting providers at a disadvantage compared to casinos already operating before the new laws came into force.

There is also a restriction that the distance between two betting shops cannot exceed 2,000 meters (6,561 feet). This is to prevent one operator from monopolizing a particular area and is part of a legal dispute between two unidentified companies.

According to a recent statement, the Fourth Chamber of the Berlin Administrative Court dismissed all complaints. It noted that the treaty gives Berlin the right to design its gambling regime as it sees fit. The court also dismissed a lawsuit to revoke an existing license, saying it was inadmissible because the betting provider lacked the necessary legal standing.

Dusseldorf confirms Berlin’s position

In Düsseldorf, bookmakers must stay at least 350 meters away from public schools and child and youth welfare facilities. This also comes into effect as the latest federal gambling agreement comes into effect.

Here too, betting providers are trying to fight state governments. However, just as in Berlin, they failed to present a convincing argument.

In a separate communication, the Düsseldorf Administrative Court confirmed that the rights of betting providers and betting agents are less important than the rights of consumers. Operators cannot claim that these laws breach EU law, nor can they claim that they are unconstitutional. Like Berlin, Dusseldorf's interpretation of the national gambling treaty is that states can set their own rules.

The operator can lodge an appeal, which must take place before the Higher Administrative Court of North Rhine-Westphalia in Münster. Based on these and other rulings, the case is unlikely to go very far.

Gambling Regulatory Commission Research

Now that new gambling protocols and new regulators are in force in Germany, everyone is excited to see how the industry performs. Online gambling and sports betting have only recently been launched in the country and need to be evaluated.

The Combined Gambling Authority (GGL) commissioned a study to conduct this assessment. PhD. Tobias Hayer, Institute of Public Health and Nursing, University of Bremen.

The purpose of the investigation is to understand how well the new protocol is working and whether the responsible gambling solution is effective. GGL did not say when the investigation would be completed but said it expected a "comprehensive review" of the contract's effectiveness in 2026.

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Source: www.casino.org

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