German gaming establishments need to shut down.
The Cologne Court has decided that the closure of German amusement arcades to hinder the spread of the coronavirus is lawful. 24 emergency applications from different operators were dismissed. The coronavirus pandemic has not only caused a decline in Germany's land-based gaming industry; here is an update.
In accordance with the Infection Protection Act
Based on the Administrative Court of Cologne's ruling, German gaming arcades may be shut down to combat the Covid-19 pandemic. Twenty-four operators attempted to sue the government over the shutdown orders. However, they were unsuccessful: "The closure of gaming arcades to prevent the further spread of the coronavirus is legal," stated the court's decision.
The 24 urgent appeals originated from 16 municipalities, including Cologne, Bonn, Leverkusen, and Brühl, where the procedure for closing amusement arcades, casinos, and betting shops was initiated under the Infection Protection Act. The operators believed the closures were "disproportionate," given the efforts made to ensure safety within the facilities.
Gambling hall operators react
The operators presented several arguments in support of their plea. They argued that gaming arcades differ from dining establishments. Furthermore, legal provisions already prescribe a minimum distance between gaming machines. The operators also pointed to the new Interstate Gambling Treaty, which enforces stricter regulations for amusement arcades.
The gaming machines include privacy screens to prevent coronavirus transmission. Employees were supposed to disinfect the machines regularly, using gloves and face masks. Additionally, "gaming arcades are relatively spacious premises," which decreases the risk. Nevertheless, the Cologne court did not accept these arguments due to the pandemic's current severity - Germany had over 24,436 infections.
Lawyers' arguments
On the other hand, the lawyers argued against the operators' claims, quoting recent remarks from the Robert Koch Institute. The fact that the novel virus spreads through social contact and necessitates "social distancing" is uncontested and necessitates "forceful countermeasures." Closures of leisure facilities like amusement arcades are one of the most effective ways to achieve this goal.
The goal is to slow the infection's progression to prevent the healthcare system from becoming overloaded. Amusement arcades can be compared to other leisure facilities like theaters or cinemas and thus closed "for valid reasons." Regardless of the minimum distance between machines, "social contact is an integral part of visiting amusement arcades."
Due to the unpredictability of the virus and the high infection risk, the operators' efforts were deemed "insufficient." The overriding consideration was "effective public health protection," which takes precedence over the companies' economic interests in continuing to operate. The court's remarks hinted at financial assistance from the state, aimed at mitigating the existential threats posed by the closures.
The operators can appeal. However, due to the dire situation, it's improbable that the appeals would be heard in the near future. Already, gambling trials have been postponed, such as in Bad Homburg, because the involved parties fall into the high-risk category.
Impact on the gaming industry
The coronavirus has affected all major European land-based gambling markets. Bookmakers have been particularly hard hit by the suspension of all sporting events. Two days ago, the British betting companies Flutter and GVC published loss notifications in the millions. In Italy, Serie A petitioned for the suspension of betting sponsorship to be lifted, anticipating losses above 700 million euros.
The pandemic's effects are also manifesting in Austria's land-based gaming industry. The state-owned Casinos Austria recently canceled all events, with gaming operations in twelve casinos suspended until at least April 13. According to Kronen Zeitung, over 2,000 employees have been put on short-time work. The safety of staff and customers is the top priority.
Since last week, the gambling region of Nevada has suffered from severe constraints due to the pandemic. The casino shutdown in Las Vegas, lasting at least 30 days, will affect 334 establishments. Governor Steve Sisolak dubbed it "never-before-seen scale." The American Gaming Association (AGA) is petitioning Congress for financial assistance.
Online gambling alternative
Many providers are seeing increased benefits due to their online gaming divisions during the crisis. Companies like GVC and Playtech have disclosed plans to use their iGaming divisions to make up for significant losses. However, the operators were cautioned against unfair advertising campaigns. The British UKGC and the Dutch KSA forbid promotions carrying the slogan "Corona-free" (or similar) under any circumstances.
KSA's representative, René Jansen, shares that similar instances have surfaced in the Netherlands. Certain unauthorized companies are taking advantage of the worldwide health issue to promote their services with targeted ad slogans. In response, the authority has vowed to crack down on these marketing efforts. At this point, it's unclear if there will be more occurrences like these.
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Source: www.onlinecasinosdeutschland.com
