German state sets sports betting licences conditions

The body in charge of granting sports betting licences in Germany has submitted the conditions for the concessions.

Germany.- Sports betting operators are setting their eyes on Hesse, the German state that is responsible under the State Treaty on Gambling for the issue of licences. The conditions for granting the concessions were submitted this week.

The Regional Council of Darmstadt, which represents Hesse, has issued a comprehensive list of demands for acquiring the licences to operate sports betting. Among these rules, potential operators must prove the existence of a German business or the presentation of a gambling licence from another German state as a prerequisite.

The applicants must assure that they do not conduct any illegal operation in the country, such as tax debts, and must present an official certificate of good conduct. “The Authority excludes in its letter a combination of sports betting with other games of chance offering. According to § 21 of the GlüStV, the operator may not perform any casino games during the term of the licence.”

The agency also requires evidence of the security of the IT network used to process the betting and all customer transfers, as well as a plan to educate customers about search risk and the potential threat of gambling.

Hesse Interior Minister Peter Beuth said: “It is an intolerable condition that sports betting is still possible in Germany without the providers taking action to combat gambling addiction or consumer and youth protection. We want to end illegal gambling and re-regulate the industry in Germany.”

Germany launched campaign against payment processors

Germany kicked off earlier this year its new campaign against online casino payment processors 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.

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. This comes after a German court ruled earlier this year that financial institutions are responsible for checking that their operations don’t facilitate illegal transactions.

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