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Significant court victory: GGL emerges victorious in judicial dispute with Swiss payment service companies

The Halle Administrative Court has upheld a decision issued by the GGL concerning the reach of payment blocking sanctions. Potentially groundbreaking judgment?

SymClub
Oct 15, 2024
2 min read
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The Halle Administrative Court endorsed the extent of payment inhibition requested by GGL.
The Halle Administrative Court endorsed the extent of payment inhibition requested by GGL.

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Significant court victory: GGL emerges victorious in judicial dispute with Swiss payment service companies

Gaming Regulatory Body Wins Big in Court Case

In an announcement on October 14th, the Gaming Governance League (GGL) revealed a triumphant court victory against a Swiss-based payment service provider. This ruling establishes significant boundaries for payment blocking.

As per the announcement, the GGL had mandated the payment service provider to block specific gambling services as well as payments to all unlawful gambling operators. The Administrative Court of Halle sided with the GGL's decision in its ruling.

The GGL highlighted the ruling's importance, stating that payment blocking had thus far only been applicable to specific gambling services. However, with the payment service provider's involvement in numerous unauthorized gambling activities, an injunction was deemed necessary in the GGL's view.

In the statement, a GGL board member, Ronald Benter, expressed the pursuit of enforcing existing gambling laws:

This victory in the use of payment blocking signifies that territorial barriers are no hindrance to enforcing gambling regulations. We do not condone disobedience from payment service providers. Non-compliant companies will experience consequences. Ronald Benter, member of the GGL board.

The Importance of Payment Blocking for the GGL

The Gaming Governance League employs various tactics to curb unlawful gambling. Apart from internet blocking, payment blocking is an effective measure.

In the case of payment blocking, payment service providers are barred from processing transactions to unlicensed gambling providers. This effectively prevents payments to illegal operators, potentially driving them out of business over time.

Moreover, in numerous countries, payment options for legal gambling providers are becoming increasingly restricted. While credit card payments for gambling are still permitted in Germany, the legal landscape differs significantly in other nations. Credit card gambling bans are already in effect in Sweden and the UK. Credit card payments for gambling are also due to be banned in Australia from June 2024.

Rapid and Assertive Action Possible

According to the GGL, the Administrative Court of Halle's ruling offers them the opportunity to respond swiftly and decisively to future, previously undisclosed involvement of payment service providers in unauthorized activities.

At the same time, the GGL stressed in its statement that payment service providers must adhere to the prevailing regulations. It called for cooperation and revealed its intention to continue taking action overseas against unauthorized activities.

The GGL board member, Ronald Benter, further emphasized the significance of this court victory, stating, "This victory in the use of payment blocking demonstrates that geographical limitations won't hinder our enforcement of gambling regulations." Additionally, underscoring the effectiveness of payment blocking, Benter highlighted, "Payment blocking is a crucial tool for us in combating illegal gambling, and we will not tolerate non-compliance from payment service providers."

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