German regulator says some daily fantasy sports are illegal gambling
The GGL has reviewed DFS products according to Germany’s new gambling legislation.
Germany.- The Gemeinsamen Glücksspielbehörde der Länder (GGL), Germany’s new federal gambling regulator, has concluded that certain daily fantasy sports (DFS) products constitute illegal gambling. The regulator reviewed DFS games under the Fourth Interstate Treaty on Gambling, which came into force on July 1.
It concluded at a hearing that some games could be classified as illegal gambling and that one well-known provider had left the market as a result.
GGL board member Ronald Benter said: “We found that our decisions are accepted by the providers and implemented promptly. This protects consumers from illegal offers and the risk of betting and gambling addiction.”
GGL CEO Benjamin Schwanke said: “Fighting illegal gambling is an important consumer protection issue and can only be effective if all other authorities, such as law enforcement agencies, work together.”
German gambling regulator wins court case over TV competitions
Last month, the GGL won a court case regarding its ruling against a television broadcaster that it said was offering gambling without a licence. The GGL had ruled that pay-to-play “competitions” run by the unnamed broadcaster were effectively unlicensed online games of chance
Germany’s federal gambling legislation, which was amended by the Fourth Interstate Gambling Treaty (GlüNeuRStv), approved in July 2021, deems any cash-prize contest which requires payment for entry to be a form of gambling. Of significance, the Munich Court has now ruled that there is no minimum threshold for stakes, and that even a competition with a very small cost and small cash prize could still be considered gambling.
The GGL has called for more cooperation from gambling operators in Germany to improve the country’s fledgling market. The regulator took full control of federal gaming regulation in January and has praised operators’ collaboration so far, but it said more could be done.
