EGBA against Germany’s payment blockings

EGBA said that Germany’s decision to block payments is not a solution to flaws in the local online gambling regulation.

Germany.- The European Gaming & Betting Association (EGBA) has voiced its opposition to Germany’s campaign against online casino payment processors. The association believes that it’s not a solution to problems in the local online gambling regulation and that more fundamental rethink is needed.

The association’s statement comes after the German state Lower Saxony ordered an international payment processor to suspend its operations with internationally licensed online casino operators engaging with German customers. It said that payment blockings are not a solution affecting Germany’s gambling regulation and that the country needs to develop an effective regulatory framework and bring its gambling policies into the 21st century.

Maarten Haijer, Secretary General of EGBA, said: “Restrictive or prohibitive measures, such as payment blocking measures, are an attempt to create artificial walls around online markets and can be ineffective and detrimental to player protection. That’s because online gambling is, like any other online consumer market, consumer-driven and players can easily search around the internet for alternative products, brands or the payment means they prefer.

“Trying to limit the options available to players will not change this reality and – by restricting their choices – might be counterproductive because it will push players towards unlicensed or unregulated websites, where they might be exposed to inadequate consumer protections and chances of redress. A much more fundamental rethink is needed in Germany to bring its online gambling policy up to speed to meet the digital realities of the 21st century. Because right now the regulatory situation is fragmented and way behind the developments in most other European countries,” he added.

Moreover, Haijer said that in order to change this, the German authorities should establish an attractive and modern online gambling regulation which acknowledges that many Germans play online casino games and ensures they – and all other players – can play within a safe and regulated environment.

Germany’s campaign against payment blockings

Minister of the Interior and Sport in Lower Saxony, Boris Pistorius, said the state government issued the order as part of its new temporary federal gambling treaty. Although Pistorius did not identify the provider, he said that it received a ban from doing business with operators offering online gambling services such as casino and lottery. Pistorius said that he hopes that this ruling sends a message, as he believes that other payment providers are now under pressure to reorganise their businesses processes related to illegal gambling.

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