Germany's recently established gaming overseer imposes initial penalty
The German Joint Gaming Authority of the States (GGL) has levied its first penalty on a gaming platform. The newly established German gaming body started operations at the beginning of the year.
The GGL announced in a recent statement that an anonymous company had breached advertising regulations. The GGL accuses the company of intentionally advertising its services on websites promoting unauthorized options, which goes against the existing Interstate Treaty on Gambling.
The regulator imposed a five-figure fine on the company for the infraction, but did not disclose the exact amount.
There are approximately 400 unauthorized gaming sites focusing on the German market. Germany has granted numerous new online gaming licenses over the past year, with a fresh wave coming in January.
The regulator suggested that players should refer to the GGL’s official directory to identify which online operators hold a license. This allows players to use only those operators that comply with the protective and risk management measures stipulated by the GGL.
German Laws
In Germany, licensed operators are prohibited from advertising on websites that also feature ads for unlicensed operators. This is a provision of Germany’s Gambling Re-Regulation State Treaty, which went into effect on July 1, 2021.
Online casinos in Germany can only function if they hold a license, as per the Gambling Re-Regulation State Treaty (quite the moniker). This has led to legal battles with operators, including PokerStars, with players suing for their losses when the operator broke the law in the country.
GGL Disputes Black Market Usage
There have been allegations that the slow pace of Germany’s online gaming introduction is resulting in an uptick in the use of underground alternatives. The DSWV, a trade association representing Germany’s sports betting sector, recently reported a "substantial drop" in participation in the regulated sector.
The GGL refutes these claims. Benter argues that, according to GGL estimations, “less than 5%” of sports bets take place in the unregulated arena. He partially bases this figure on tax data provided by the Federal Ministry of Finance. However, it's challenging for authorities to accurately cite the number of wagers happening on unregulated platforms, as winners avoid paying taxes on offshore winnings.
A judge has already ruled that ISPs need not block access to certain gaming websites, making it simpler for consumers to play offshore. Moreover, there's nothing to prevent the use of a VPN to circumvent geolocation and other restrictions.
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