An unnamed Swiss payment provider has been banned from handling transactions associated with unlicensed gambling operators in Germany.
The Halle Administrative Court upheld regulator Gemeinsame Glücksspielbehörde der Länder’s (GGL) move to block the provider from processing such transactions.
The GGL said it was noteworthy that the court backed the application of a broader-than-usual interpretation of the ban. Typically, such sanctions require “prior notification of specific gambling offers”. However, the provider will also be blocked from engaging in potential future unregulated gambling transactions, as well as existing ones.
The decision, which was handed down by the court on 2 October, was only publicised this week.
“National borders no obstacle” to GGL’s efforts
The ruling appears to strengthen the GGL’s efforts to clamp down on enablers of illegal gambling outside Germany.
“This further success in the use of payment blocking shows that national borders are no obstacle to the enforcement of gambling law,” GGL board member Ronald Benter said. “We do not tolerate uncooperative behaviour by payment service providers. Companies that do not comply with the applicable laws must expect consequences.”
The GGL also urged all payment service providers to “comply with the legal requirements and work with the GGL”.
Black market
The latest development comes against a backdrop of growing fears about the scale of black market gambling in Germany.
The GGL claimed in July that illegal gambling accounted for a modest 4% of the German market in 2023.
However, most industry stakeholders, including the Deutscher Onlinecasinoverband (DOCV) trade body, believe this figure vastly underestimates the problem.
A University of Leipzig study last year claimed nearly half of all online gambling in Germany is with unlicensed operators. The GGL is due to deliver a report on the effectiveness of the fourth State Treaty on Gambling by 2026. However, some industry stakeholders like the DOCV are lobbying for an accelerated review.
