-
Casinos for you
German Gambling Authority Flexes Its Regulatory Muscle for the First Time
By Shane Addinall Mar 20, 2023 LegalityThe German regulator proves to be a tough, no-nonsense authority as it imposes its first five-digit fine for contravening the State Treaty on Gambling provisions. Join us to learn more about the error they made and what the GGL is doing about illegal ads.Whenever a new gambling authority comes into power, there are questions about how it will perform. For players and licensed operators, one of the biggest questions to be answered is how the commission will handle gambling sites that flaunt local gambling laws.
While it might seem counterintuitive, having the regulator take a firm hand with licensed operators is a positive sign. The drive to deal with any opposition to the current Gambling Act from licensed sites should translate to an equally no-nonsense approach to deal with black market casinos looking to steal business from legal casinos.
GGL Takes a Stand
Earlier this month, the newly empowered GGL doled out its first hefty fine. The administration fined a licensed online gambling site for violating the Gambling Act’s laws on how to advertise casino bonus offers.
GGL CEO, Ronald Benter, said:
Quote"We consider these advertising regulations to be very good and justified. GGL consistently monitors offers from legal providers. In the event of violations, we levy heavy fines. The withdrawal of the license in the event of repeated violations of the provisions of the State Treaty on Gaming is a measure that we do not shy away from ."
While the regulator would not provide the specific value of the fine, it was willing to say that it was a hefty five-digit penalty.
What Was the Offence?
Given that the transgression was committed by a brand with a license to operate in Germany, we were interested to understand what has raised the regulator's ire. According to a press release by the GGL, the operator "deliberately advertised his offer on websites that also advertised illegal offers”.
Board member Benjamin Schwanke commented:
Quote"The legal online gambling providers cannot have any interest in advertising on sites that also advertise illegal gambling. This decision damages the reputation of the providers."
The GGL holds firm that it is in the best interest of operators and players for licensees to distance themselves from unscrupulous advertising platforms. Doing so ensures the growth of the regulated market, increases the gambling jurisdiction’s channelisation rates and protects the players from potential harm.
The press release reminded operators that marketing and advertising agreements with platforms which also promote illegal gambling ads are not allowed under the provisions of the State Treaty on Gambling. While this early response was just a fine, should the issue continue, the GGL has the authority to revoke a gambling license and ban the operator from doing business in the country.
Shouldering The Burden
For their part, the GGL is not placing the entire burden of avoiding unlicensed platforms on the shoulders of licensed operators and players. The regulator is currently involved in a case with German courts which will allow them to ban sites at an IP level.
Ronald Benter stated:
Quote"We remain optimistic that the instrument of network blocking will ultimately be upheld by the courts as a last resort in the fight against illegal online gambling."
Should the local courts allow the gambling authority to proceed with network blocks, they will begin to research these black market ad platforms and operators themselves and simply require local ISPs not to allow access to these web pages on their networks.
This action will go a long way towards increasing the regional channelisation rates, which are already sitting at a very impressive 95%.
You might also like