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Germany’s Joint Gambling Authority of the Federal States (GGL) has said that an administrative court confirmed its decision to bar a payments service provider based in Switzerland from facilitating transactions for illegal gambling offers.
One gambling attorney said the decision represented a “significant milestone” in the GGL’s efforts to contain illegal gambling, but warned that it could be reversed on appeal as being too broad.
The ruling against the unnamed company affirms the German regulator’s ability not only to take action across national borders, but also to take action against all unlicensed gambling, not just specific, named cases, the regulator said Monday (October 14).
Prior notification of specific violations is usually required, the GGL said.
But given the “widespread involvement” of this particular payments provider in illegal gambling offers, the regulator said it found it essential to extend a broader prohibition order, the agency wrote.
“This further success in the use of payment blocking shows that national borders are no obstacle to the enforcement of gambling law”, said Ronald Benter, co-chair of the GGL.
“We do not tolerate uncooperative behaviour by payment service providers. Companies that do not comply with the applicable laws must expect consequences”, he said.
Fabian Masurat, a Taylor Wessing attorney, said the court ruling was significant, because law enforcement traditionally demands the identification of specific gambling operators before action takes place.
“The ruling is a signal that payment service providers, must comply with German gambling regulations”, and means the GGL will continue to target international payments processors, he said.
They will also ask the processors to voluntarily comply, “knowing that non-compliance carries tangible legal consequences”, Masurat said.
But it is uncertain whether the ruling will stand up on appeal, as “from a legal point of view, it might be questionable whether very broadly-worded administrative orders hold up to legal scrutiny in the higher courts”, he said.
The ruling came in administrative court in Halle, the Saxony-Anhalt city where the GGL itself is located.
Separately, Interwetten, a gambling sponsor of the German Football Association (DFB), said it will no longer offer bets on German amateur football matches anywhere on its international platforms.
In August, the GGL reminded bettors that it is illegal in Germany to bet on an event in which all or a majority of the participants are amateurs, with the exception being world championships or the Olympics.
Interwetten was founded in Germany, but is now Malta-based.
The information was posted on the DFB’s website.
