Gaming in Germany Newsletter – Google restricts gambling ads to licensed offerings in German

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Google has announced significant changes to its gambling advertising policy in the German market. The update, which is set take effect from September 25, introduces stricter requirements for gambling operators and intermediaries seeking to advertise on Google’s platforms in Germany.

Specifically, only operators and intermediaries licensed by Germany's gambling regulator GGL will be eligible to apply for advertising certification for gambling products outlined in Google’s gambling and games policy. This policy revision aims to align Google’s advertising practices with German regulations and ensure compliance with local gambling laws.

The new rules represent a significant shift in Google’s approach to gambling advertisements in the German market. Previously, a broader range of gambling-related services could potentially advertise on Google’s platforms. However, with the new policy, applications from advertisers of online gambling services who do not meet the GGL licensing criteria will no longer be accepted.

Violation of Google's new rules would lead to an immediate suspension of the advertiser's Google Ads account. This extends to services offering gambling aggregation, such as affiliate websites that link to multiple offers from different operators.

While the implications of this policy update could be far-reaching, it remains to be seen to what extent the new rules will help protect the legal market and discourage players from opting for illegal offerings.

GGL Co-Chair Ronald Benter to headline 2024 Gaming in Germany Conference

The 2024 Gaming in Germany Conference, which is set to take place Tuesday, November 5, 2024, at the five-star Hotel Adlon Kempinski in the heart of historic Berlin, will once again be THE place to meet key decision makers and to get the latest information on Germany's online gambling market.

Confirmed speakers include Ronald Benter, Co-Chair, Gemeinsamen Glücksspielbehörde der Länder; Dr. Jörg Hoffman, Senior Partner, Melchers Law Firm; Mathias Dahms, President, Deutscher Sportwettenverband; Dr. Dirk Quermann, President, Deutscher Online Casinoverband; Dr. Andreas Ditsche, CEO, iGaming.com; Stanisław Szostak. CEO, Astral Forest; Annika Lindberg, Trustee at Gordon Moody; and many more!

Check our website for more information, or register now: https://bit.ly/GiG2024

Federal Finance Court upholds taxation of (unlicensed) sports betting offers

Germany's Federal Finance Court (BFH) has found that the taxation of sports betting does not violate the country's constitution or European law. The amount is "moderate" and the EU freedom to provide services is not violated, the BFH in Munich decided.

Under German law, operators must pay a tax of 5.30% of the stake, regardless of their location if the bettor is from Germany. The operator saw this as a violation of the freedom to provide services applicable in the EU and complained that it would be too much work to identify German players.

Since the BFH dismissed the complaint, Germany's practice of taxing even unlicensed offerings was upheld.

German administrative court upholds ban on illegal advertising from abroad

The Higher Administrative Court of Saxony-Anhalt has confirmed the opinion of the GGL that streamers based abroad can be prohibited from advertising unlicensed online gambling offers to German consumers.

The legal proceedings resulted from a cease-and-desist order issued by the GGL to a well-known German streamer based abroad who had advertised unlicensed gambling offers to his viewers in Germany. The streamer filmed himself while playing virtual slots games and published the resulting footage on the Kick streaming platform.

17 football games under match-fixing investigation

Authorities in the states of Hesse and Saarland said they were looking into "conspicuous" matches in their jurisdictions, while Germany's Federal Criminal Police Office (BKA) said it was "involved in the process in its role as central coordinator."

Matches from Germany's professional third division (3. Liga), semi-professional fourth tier (Regionallliga) and amateur fifth tier (Oberliga) may have been manipulated for gambling purposes since November 2022.

Discussions among the manipulators are said to have taken place digitally on the dark web, with chat protocols reportedly revealing that illegally accrued winnings were to be paid in crypto currencies such as Bitcoin.

Interim report on the evaluation of the Interstate Gambling Treaty published

Following the June meeting of the Conference of Interior Ministers of the German States, an interim report on the ongoing evaluation of Germany's 2021 Interstate Gambling Treaty was published.

The report identified four areas in which change was urgently needed:

  1. IP blocking. While payment blocking has been effective in combating illegal gambling, IP blocking has been successfully challenged in court. In view of this development, the legal basis of this instrument must be revised. In addition, the instrument should be expanded to include the blocking of advertising of illegal gambling offers.

  2. Licensing of virtual slots games. Currently, all virtual slots games must be licensed individually by each operator separately. As a result, of the approximately 5,400 game applications, only around 1,300 have been reviewed and approved. The separate licensing procedure for each individual virtual slots game is particularly time-consuming and labor-intensive. A possible solution could be to allow game developers to submit license applications to prevent multiple applications for the same game from different operators.

  3. Information exchange with foreign authorities. The GGL (and other supervisory entities) currently have insufficient authority to request relevant information from foreign authorities, for example on ongoing investigations in the country where a specific operator is based. A more complete legal authorization should be included in an updated version of the Interstate Gambling Treaty.

  4. Information exchange with domestic authorities. Analogue to point #3, the power to request information from state and federal authorities, including the Financial Transaction Investigations Center, should be strengthened.

Germany's licensed online operators should be particularly happy with the first two points, as both IP blocking of illegal offers and a much-simplified licensing procedure for individual games are long-held wishes of the industry.