Court says German gambling regulator can impose penalties over gambling ads

A court has agreed that the GGL can enforce rules on compliance with advertising laws.

Germany.- The Higher Administrative Court of Saxony-Anhalt has ruled that Germany’s new gambing regulator Gemeinsamen Glücksspielbehörde der Länder has the power to enforce rules and impose penalties over breaches of advertising laws. Some online casino operators had complained about the regulator’s approach.

Saxony-Anhalt is the state that hosts the new German gambling regulator, which became fully functional at the start of this year, replacing the previous interim gambling authority. The court has ruled that the GGL’s ancillary provisions are legal, allowing it to enforce bans on gambling advertising by social media streamers and influencers, infomercials, marketing of social casino games and marketing with affiliates that link to unlicensed gambling sites.

However, the court stressed that there is no complete ban on gambling ads in public spaces.

The court said: “Most of the contested ancillary provisions are legal after a summary examination. In particular, the 3rd Senate approved the bans on infomercials, advertising for free online casino games and virtual slot machines, influencer marketing, advertising by streamers and affiliate advertising with partners who also promote illegal gambling are likely to be legally permissible.

“The regulations are necessary to ensure compliance with goals of the interstate treaty on gambling, which include averting the risk of addiction and protecting minors.”

The court had already sided with the GGL on its approach to affiliates that promote unlicensed gaming. The court ruled that the GGL has the power to prohibit gaming licensees from deliberately advertising on sites that feature such offerings.

The decision came after the GGL issued a five-figure fine against an unnamed licensee for breaching the regulations. It says the operator had deliberately advertised on websites that also advertised illegal gambling, putting it in breach of interstate gambling legislation that came into force in July 2021.

However, the latest court decision clashes with that of the Administrative Court of Hamburg, which has ruled that the prohibition on influencer marketing has no legal grounds. Licensed gambling operators have argued that Germany’s tight restrictions on gambling ads favour the black market.