Daily Fantasy Sports (DFS) games began to slowly increase their visibility more than a decade ago. Since then, their popularity has been expanding and many sports fans and bettors found such games engaging and entertaining. Mostly favored in the United States, DFS games are also available in different jurisdictions around the globe including Europe and Latin America.
In light of the increase in popularity of such games, the gambling regulator in Germany, the Federal Authority known as Gluecksspiel (GGL), recently looked into DFS games. But what are DFS games? Such games enable the participants to form a team consisting of virtual players that are based on the stats of real players from different sports leagues.
Once a team is formed, then the participants play against each other and depending on the statistics of the players, an outcome is determined which can be either a win or a loss. This functionality, which resembles a “game of chance,” according to the regulator, needs to be regulated.
Protecting the Consumers Is Paramount
The effort, GGL explained, comes at a time when the regulator seeks to implement effective protection for online gamblers. The GGL classified some DFS games as “illegal gambling.” However, upon further consultation late last month, it allowed a limited number of DFS games to operate and classified them as gambling products under the Fourth Interstate Gambling Treaty (GlüNeuRSt) in the country.
“Fighting illegal gambling is an important consumer protection issue and can only be effective if all other authorities involved, such as law enforcement agencies, pull together.“
Benjamin Schwanke, CEO of GGL
GGL’s CEO, Benjamin Schwanke, explained that the fight against illegal gambling can be effective only if different law enforcement, authorities and regulators join forces. Still, he acknowledged that protecting consumers from illegal gambling is significantly important.
“We find that our decisions are accepted by the providers and implemented promptly.“
Ronald Benter, Board member of the GGL
Ronald Benter, GGL’s Board member, added that the Authority sees that providers adhere to GGL’s decisions and implement changes quickly. He pointed out that the changes related to DFS games ultimately seek to protect consumers from gambling-related addiction and illegal gambling. Benter reminded that a whitelist containing all regulated operators can be found via GGL’s website.
