German court says Lottoland blocking order is illegal

The new German gambling regulator had ordered a block against the lottery betting business.

Germany.- The Higher Administrative Court of Rhineland-Palatinate in Koblenz has ruled that a blocking order made by Germany’s new federal gambling regulator Gemeinsamen Glücksspielbehörde der Länder (GGL) is illegal. The regulator issued the order to the lottery betting business Lottoland because it does not have a German licence.

The regulator singled out Malta-based Lottoland for its first enforcement action because it saw it as particularly dangerous, arguing that its product could be confused with a licensed lottery. However, an IP provider objected to the order to block Lottoland’s sites.

The Higher Administrative Court intervened following an appeal and ruled that the order should be suspended. It described the order as “clearly unlawful” because the GGL did not have the authority to issue an order to the telecommunications company. German law also exempts service providers from third-party content transmitted via its service.

The GGL is looking at other enforcement options, including collaboration with tax authorities and payment providers. A board member has described reporting gambling providers to tax authorities as “one of the most effective instruments for combating illegal gambling on the internet”, noting that “with tax debts, the probability of obtaining a permit in the future is almost zero”.