germanys_gambling_regulator_issues_first_ip_block_order_

Soon after the new regulator was given the power to control the online gambling space in Germany, the Glückspielbehörde blocked its orders with Internet Service Providers (ISPs) to deny service to certain websites to residents of the country.

Online gambling is legal in Germany following the ratification of the fourth state gambling treaty with the Gemeinsame Glückspielbehörde der Länder (GGL), which sets enforcement measures from July 1 and has full regulatory powers on January 1, 2023.

In previous amendments to the State Gambling Agreement, the Niedersachsen Ministry of the Interior was responsible for implementing payment blocking controls for the entire country. However, this power also came to the GGL with the passage of the Fourth Amendment.

The first payment block implemented by the German state of Niedersachsen was in June 2019, when the trial balloon passed like lead with the leaders of some federal states making waves, suggesting that the orders were premature and unjustified. Germany’s soon-to-be “liberalized” online marketplace.

This body also has the authority to refer criminal charges against unauthorized operators to the responsible legal authorities for prosecution. According to information provided by GGL late last week in a digital press release, providers from other European countries who accept bets from German residents without the necessary licenses could face criminal trials and convictions in absentia.

The body is not expected to flex its enforcement muscles before fully deploying its resources next year, but if unscrupulous operators tempt the fledgling regulator, the fangs may emerge.

Visible results until 2023

According to the press release:GGL’s stated goal is to achieve visible results in the next 6 months. With ongoing enforcement, the authority also wants to strengthen licensed providers that comply with state treaty laws on gaming, resulting in greater costs and effort, and where barriers to gambling are greater for player and youth protection reasons. Is.

GGL board member Benjamin Schwanke said:We are interested in working with payment service providers, but if the payment service provider does not meet its obligations, we can also initiate appropriate administrative procedures and have effective means of enforcing orders.

Historically, ISP blocking orders have been issued either piecemeal or through “industry blacklists” that regulators provide to ISPs and service providers required by law to block access to sites, or through criminal, civil or Other regulatory measures should be taken.

Lottery betting site operator Lottoland was the first company to be censored, which is just one of the potential tools regulators could use to enforce legal compliance and control business in their sphere of influence.

Locally regulated and licensed operators are often at a disadvantage in competing with the free and open market due to increased taxes and other burdens such as increased overhead costs related to compliance issues, including those imposed to protect actors. are. Licensed operators in Germany are taxed at a rate of 5.3% on every bet. However, this rate is taken from the tax base, resulting in an effective tax rate of 5.03%, which is more than 5% more than what non-licensed operators pay.

Punters are also not allowed to pay out more than €1 per slot spin. Together, with advertising restrictions and limits on bonuses and other incentives, unlicensed operators can enjoy a significant competitive advantage over highly regulated operators and may push some players into the illegal market.

Unauthorized lottery betting

One of the reasons Lottoland may have been targeted first is that there is currently no legal framework for lottery betting or poker networks under the Fourth State Treaty. A “lottery bet” is a unique form of gambling where bookmakers or other online providers offer odds on the results of regular draws.

Unlike Lottery messenger service Buying tickets on your behalf anywhere in the world, lottery bettors simply bet against the odds and the bettor pays out small winning bets directly and jackpots from an insurance policy or pool.

GGL noted:A network of companies operating under the name Lottoland has been offering illegal gambling for years. This offer is particularly shaky because many players believe they are entering a lottery game at Lottoland. However, this is not the case

Board member Ronald Benter noted GGL’s powers to reign in unlicensed operators using tax laws:From our point of view, the reporting of gambling providers to the responsible tax authorities is one of the most effective tools to combat illegal gambling on the Internet. Because with tax debts, the possibility of obtaining a license in the future is close to zeroBanter explained.

Operators with tax liabilities in Germany run the risk of not being able to obtain licenses in other European countries. Existing gambling licenses can also be revoked under the rule of law.

Source: Germany issues first IP blocking order to LottolandiGaming Business, 11 July 2022

By bsadmin

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