Since our last update, significant developments have occurred in the German gambling landscape, further shaping the regulatory environment. While some progress has been made, many legal questions and regulatory challenges remain unresolved, particularly in the areas of licensing, enforcement, and cross-border operations.
I. Expansion of GGL's Powers and Responsibilities
The joint German gambling supervisory authority, “Gemeinsame Glücksspielbehörde der Länder” (GGL) continues to assert its authority, aiming to standardize and streamline the regulatory framework for online gambling across all German Federal States. Since January 2024, the GGL has enhanced its focus on enforcement, employing a broader range of measures including stricter compliance checks, prohibition orders and improved collaboration with licensed operators regarding payment service providers in order to monitor transactions. Its capacity to initiate criminal investigations and enforce penalties for unlicensed operators has also expanded, positioning it as the central regulatory body for all gambling activities in Germany.
In response to ongoing challenges, the GGL has also increased its efforts in combating unlicensed gambling platforms, with a special focus on offshore operators. Consequently, various prohibition orders were issued. In addition, the GGL has acted against streamers of gambling from outside of Germany. A corresponding prohibition order by the GGL was confirmed by the Higher Administrative Court of Saxony-Anhalt in its decision of 11 July. The effectiveness of these measures is still under review.
II. Updates regarding licensing procedures
The German Interstate Treaty on Gambling (ISTG 2021) continues to serve as the foundation for licensing online sports betting, virtual slot machines, and online poker. However, the GGL regularly publishes new guidelines that specify i.a. the technical and compliance standards that operators must meet. The GGL has also strengthened its oversight of marketing and advertising practices to ensure that they are consistent with the principles set out in the ISTG 2021.
For online casino games such as Blackjack and Roulette, the situation remains fragmented. Here, the GGL is not responsible. Instead, the respective Federal States are responsible for awarding licenses. Several German Federal States, including Schleswig-Holstein and North Rhine-Westphalia, have decided to grant a limited number of licenses for online casino games, while others have yet to decide whether to permit private operators or reserve these operations for state monopolies.
III. Recovery claims
The debate over recovery claims from players who lost money on gambling platforms without a German license remains a contentious issue. Throughout 2022 and 2023, a growing number of lawsuits were filed by players seeking to recover lost stakes from operators who offered gambling services without a respective license. In the meantime, the highest German court, the Federal Court of Justice (BGH), has suspended refund proceedings with relevance for slots and online poker (Case No.I ZR 53/23) as well as online sports betting (Case No. I ZR 90/23) and referred the respective cases to the European Court of Justice (ECJ) for a decision. Accordingly, a corresponding precedent case law from the ECJ can be expected soon. For more details on the respective cases see our separate updates with relevance for slots, online poker (Case No.I ZR 53/23) as well as sports betting (Case No. I ZR 90/23).
IV. Maltese Bill 55 and its Continued impact on Germany
Malta's controversial Bill 55, which shields Maltese operators from the enforcement of foreign judgments related to recovery claims, continues to cause friction with German regulators. In the view of the German gambling authority GGL, Bill 55 is in breach of EU law. However, GGL intends to await developments and a likely legal review at EU level. However, as of 2024, the European Union has yet to take definitive action on this issue.
V. Outlook
The regulatory environment for German gambling is expected to continue to develop over the next few years. The most important developments to watch include the upcoming decisions of the ECJ regarding German gambling regulation, which will have a significant impact on players' claims for reimbursement.
