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GGL Sticks the Landing of its First Online Casino Court Case in Germany
By Shane Addinall May 15, 2023 LegalityThe GGL successfully defended its first action against a licensed casino before a German Higher Administrative Court. This secured its five-figure fine and set a legal precedent for enforcing the State Treaty on Gambling with offshore operators.In March 2023, the newly empowered German gambling authority, Gemeinsame Glücksspielbehörde der Länder (GGL), took its first legal action against a licensed online casino believed to be in breach of the advertising provisions of the State Treaty on Gambling.
At the time, GGL CEO Ronald Benter supported the decision, saying:
Quote“We consider these advertising regulations to be very good and justified.”
He was supported by board member Benjamin Schwanke, who added:
Quote“The legal online gambling providers cannot have any interest in advertising on sites that also advertise illegal gambling. This damages the reputation of the providers.”
The operator was found to have knowingly advertised on an offshore gambling website that also promoted welcome bonuses from unlicensed casinos to German players.
The High Administrative Courts Stand by the GGL
While the GGL is the central supervisory and enforcement authority for online gambling across all sixteen German states, it is not the final arbiter of the country's gaming laws. The administrative court in Halle was the first to rule in favour of the GGL decision. However, it fell to the higher administrative court of the state of Saxony-Anhalt to finalise the decision.
In this, the Higher Administrative Court found the following:
- It found the decision to find the casino operator guilty of breaching its license valid.
- Websites offering both legal and illegal German-facing offers are in breach of the country’s gambling act.
- It placed a burden of duty on the licensed operator to ensure it only partners with sites offering legal promotions and games of chance.
Based on this ruling online casino owners will be legally required to pay a five-figure fine or risk losing their newly acquired license to operate in Germany.
The Courts Explain Its Requirements in Detail
While these provisions covered the case in question, several other points were raised in addition to the above, as it was felt the courts needed to assert their position on the extent to which it demands compliance with the gambling act from affiliates and operators.
These additional points of compliance included:
- Advertisers are responsible for pointing local players to approved casino sites.
- Sufficient information about safer gambling must be available to all visitors.
- Appropriate age requirements must be clearly visible.
- Promoting free online slots, casino games, or poker promotions is banned.
- Deposit bonuses must state who may claim them, offer clear terms, and be upfront about time limits.
The courts also added that in the case of sites offering links to safer gambling support, counselling and therapy options, the State Treaty on Gaming 2021 demands that they be provider-independent.
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