Germanys fresh gambling oversight body, the Glücksspielbehörde, has issued its initial blocking order to internet service providers under the nation’s new gambling regulations. The order targets the lottery betting operator Lottoland.
The agency, which assumed responsibility for enforcing the prohibition on unlicensed gambling in July and took control of all gambling rules in Germany in January, has now commenced blocking websites of specific operators. They specifically mentioned the lottery betting enterprise Lottoland.
The Glücksspielbehörde declared that the entire lottery betting sector presents a risk of confusing players regarding the nature of their offerings. They pointed out that lottery betting is forbidden under the country’s Fourth State Gambling Agreement.
“The network of companies operating under the Lottoland name has been providing unlawful gambling for years,” the regulator asserted. “This form of gambling is particularly hazardous because many players believe they are participating in lottery games at Lottoland. However, this is not the situation.”
In the realm of payment prohibition, authorities highlight that Lower Saxony had the capability to halt payments prior to the Glücksspielbehörde assuming control. Nevertheless, committee member Benjamin Schwanke asserted their desire to enhance the efficacy of payment blocking, as the newly established agency possesses amplified authority to exert pressure on payment providers.
“Our aim is to collaborate with payment service providers, but in the event of non-compliance with their responsibilities, we retain the capacity to initiate suitable administrative procedures. We possess the instruments for effective enforcement directives,” Schwanke stated.
Concurrently, Glücksspielbehörde committee member Ronald Bent emphasized the regulator’s ability to report operators to tax authorities, compelling them to settle custom payment levies collected from Germany.
“Reporting gambling providers to the pertinent tax authorities constitutes one of the most potent instruments for combating illicit online gambling. The presence of a tax liability virtually eliminates the prospect of securing a license in the future,” Bent remarked. “A tax debt in Germany might also lead to the denial of a license abroad. Previously granted licenses are also subject to revocation.”
At present, only a limited number of operators hold licenses to conduct sports betting and online casino operations. Those possessing licenses confront stringent regulations, encompassing a €1 wager limit on slot machines. Furthermore, operators are obligated to remit a 5.3% tax on their slot machine revenue.
As a result, authorized internet gambling firms are facing intense rivalry from unauthorized operations.
At present, only three providers – Mernov, Tipwin, and Mybet – are permitted to provide online slots, and none are authorized to offer online poker, even though officials in Saxony-Anhalt indicate that nine more permits are anticipated to be granted shortly.
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