Probe intoTipico and Lottoland
Even though the transitional rules allow for a grace period, the Frankfurt public prosecutor's office has launched an investigation into several online gambling companies, including Lottoland and Tipico, for allegedly conducting illegal gambling operations. This comes as a shock, as these companies are only allowed to operate legally after July 2021 if they abide by the rules established in the Interstate Gambling Treaty. The prosecutor's office justifies its actions by arguing that tolerating criminal behavior is not acceptable under law.
The Interstate Gambling Treaty is set to legalize online casinos, sports betting, and poker starting next year, but until then, these activities are considered illegal in Germany. However, the state has tolerated the presence of these companies until then, resulting in a legal grey area. Largely EU-licensed providers, such as Lottoland (based in Gibraltar) and Tipico (from Malta), have operated in this space. While these providers have been allowed to exist with some restrictions, Germany has been reluctant to fully legalize gambling under this new treaty.
The temporary regulations are intended to avoid criminal investigations against these companies if they meet the future requirements. This logic has been applied to sports betting since 2019. The investigation into Tipico is surprising as it was one of Germany's first betting licensees.
The Frankfurt public prosecutor's office claims that the named companies have been offering real-money online casinos without licenses, and that two banks and a card company have ignored payment blocks. All three are under investigation for facilitating illegal gambling. Noah Krüger, senior public prosecutor, reassures that the tolerance towards online gambling companies during the transitional period is not significant in criminal law. He insists that the office must uphold the law.
Criminal law is considered a higher-ranking law than administrative agreements or toleration between state chanceries. Providers should expect legal repercussions if they operate without a license. The tolerance of online gambling companies by various authorities can only apply to the administrative actions and does not involve criminal law. The investigations by the Frankfurt public prosecutor's office will not be halted.
Despite the ongoing discussion about a central gambling authority, the interim supervision remains with the interior ministries. The Frankfurt public prosecutor's office advised these authorities to not actively promote online gambling companies. They should avoid giving the impression that the companies can offer their products in Germany without a license, or else they could be charged with incitement or aiding and abetting.
While the transition to legalization for online gambling is happening, Lottoland and Tipico are on the prosecutor's radar. Lottoland, a secondary lottery provider based in Gibraltar, has drawn the attention of the authorities for potentially threatening the German lottery monopoly. It allows players to participate in international lotteries without buying physical tickets and takes on the risk of winning. However, critics claim that this confuses customers and does not contribute to the public good like the state lottery.
Lottoland has attempted to obtain a license in Germany as a lottery broker in exchange for not promoting activities that might undermine the German lottery monopoly. This proposal is controversial among lottery offices and the federal states.
Tipico, a Bundesliga sponsor and online casino operator, has issued a statement, maintaining that their operations are legal and that the proceedings will not have any impact. They have made the necessary adjustments to comply with the temporary regulations. Furthermore, they support the future uniform regulation in Germany.
For now, we'll have to wait and see what happens. In the meantime, some left-wing members of the Bundestag want the Scientific Service to reexamine the current situation. They claim that the toleration agreement isn't a legally-binding administrative contract; instead, it's a non-binding cooperation deal. The decision of what types of gambling are allowed and what types should be outlawed is up to the lawmakers in parliament.
Read also:
- Schalke nears massive changes
- Immediately renew Terzic's contract.
- Gulacsi sets a challenge for the upcoming million-man group.
- The St. Pauli manager held the injured player.
Source: www.onlinecasinosdeutschland.com
