Workplace and social betting on sports events: Legitimacy of unauthorized wagering activities?
Setting up a Private Fantasy Football League with Colleagues or Friends
During the Euro league season, everyone suddenly turns into a football aficionado and expert, quickly filling up the fantasy leagues. In Germany, these leagues could be seen as gambling if they come with a monetary wager. How substantial is the risk involved?
Private Fantasy Leagues vs. Public Gambling
As per Section 3 of the State Treaty on Gaming (GlüStV), gambling is present when "a fee is charged for the acquisition of a chance to win." Many friends and even some companies charge a small entry fee for fantasy leagues, forming a prize pool for the top performers. Therefore, it's safe to say that this requirement is met, as only those who pay to play can potentially win.
The situation might become more complicated if the private fantasy league begins to take on a public character. According to Section 3 of GlüStV, a public gambling activity, requiring a license, occurs if participation is possible for a larger, non-closed circle of people. If a company invites customers, suppliers, and their families to a fantasy league, it could acquire a public character.
Public gambling activities, as per Section 284 StGB (currently under debate in German politics), can result in a prison sentence of up to 2 years in severe cases.
The IHK Munich warns that companies might inadvertently organize gambling activities. Before organizing a public event, the responsible parties should seek legal advice.
Legal Approval for Private Fantasy Leagues
Lawyer Vincent Dittrich gives the green light provided it's a private fantasy league. On the portal anwalt.de, he asserts that fantasy games among friends and colleagues are not legally problematic, provided that "the organizers are not making money."
Even if a fee is paid, it's assumed that the sporting ambition, not the desire to win, drives the players. If the organizer of the gambling activity does not intend to profit (e.g., by keeping a percentage of the fee), there is no risk involved.
Although games in closed societies can also be considered gambling, such as illegal poker tournaments, this classification only applies if they take place regularly, and the desire to win is the focus.
Honoring Debts from Private Fantasy Leagues
Dittrich also reminded, referring to Section 762 BGB, that any winnings from private fantasy leagues are not enforceable. As per the old adage, "Gambling debts are a matter of honor," there are no player protection measures for participating in private fantasy leagues, as it's not regulated gambling.
In Germany, some individuals might participate in online casinos instead of private fantasy football leagues, as online casinos aren't necessarily considered gambling if no monetary wager is involved. However, online casinos offering gambling services in Germany need a license to operate legally.
On the other hand, participating in online casinos in Germany that require a fee and offer a chance to win could potentially lead to legal issues, as they could be categorized as gambling activities based on Section 3 of the State Treaty on Gaming (GlüStV).
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