PokerStars Calls For Repeal Of Germany’s Chaotic Anti-iGambling Laws

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Monday, February 16th, 2015 | Written by Stephen Smith

This week, PokerStars joined a growing choir of voices calling out for an overhaul of Germany’s anti-iGambling laws, which forbid all types of online wagering with the exception of lotteries, horse-racing and internet sports betting. PokerStars announced its support for the movement at a German Association of Telecommunications and Media (DVTM) annual meeting in Munich, and as the poker room’s spokesman Eric Hollreiser explained:

“The legislative situation in Germany calls on industry to take action. The industry must work together to develop an effective impact.. The common goal is a consumer-oriented, legally compliant and EU compliant regulation of the German online gaming market.”

Interstate Treaty on Gaming Background

Germany´s anti-iGambling stance is a result of the country’s Intestate Treaty on Gaming, which was adopted by all 16 of Germany’s constituent states in 2008. Initially designed to protect its lottery monopoly, the treaty was later successfully challenged by the European Court of Justice, leading to Germany subsequently attempting to appease EU’s concerns by issuing twenty online sports betting licenses four years later, whilst continuing to restrict online gambling in general.

A key development during this reorganization, however, was the refusal of the state of Schleswig-Holstein to join the amended treaty, and instead go it alone in issuing 64 casino and game licenses. A change of state government less than one year later then saw Schleswig-Holstein opting to join the treaty after all, in the process leaving dozen of online operators holding legal online gaming licenses in a country where internet gambling was again prohibited.

Chaotic and Complex Situation

The country having two regulatory systems has created great confusion amongst players and operators alike as to which law has precedence over the other, although Germany’s Federal Court has attempted to address the issue by leaving it to the individual states to decide. Nevertheless, the DVTM, one of the country’s chief association aiming to overhaul the country’s ban on all types of internet gambling, has described the situation as “chaotic and complex” and at its 7th Annual Dinner in Munich reaffirmed their commitment to seek a legally EU compliant internet gambling environment.

Germany’s Betting Laws Attacked

PokerStars now allied with the DVTM and supporting its efforts sends a strong, but subtle message to German authorities that the 2008 Interstate Treaty on Gaming needs to be changed. Another association which has attacked Germany’s betting laws is a sports wagering group called Deutsche Sportwettenverband (DSWV), which has warned that the legally uncertain environment is currently being exploited by unregulated operators. As DSWV president Mathias Dahms, explains:

“It is with great concern to witness the growth of the black market. Unfortunately, this is a logical consequence of the chaos in the German licensing, which affects not only consumers and reputable suppliers of gambling services, but also the state. Without a legally valid licenses, our hands are tied. Otherwise, we will have to immediately begin legal action against traffickers on their own.”

The DSWV further decried the fact private sports wagering businesses paid 97% of the €226 million in federal betting taxes collected last year, with just a mere 3% paid by a state-owned offshoot of the Germany Lottery called Oddset.

Further criticism of the country’s disorderly betting landscape has come from the European Parliament, with UK Independence Party member Stuart Agnew recently requesting that the European Commission clearly state whether Germany is complying with EU Article 49 relating to the movement of free trade, and if not demanding to know why no infringement proceedings have been initiated by the EC.

Exodus Of Gaming Sites Continue

While the confusing situation is waiting to be resolved, online gambling sites have been compelled to withdraw from the German market, and in January Casino.com, MansionCasino.com, LesAcasino.com, Club777.com, and SlotsHeaven.com, all did so citing the restrictive regulatory situation in Germany. The latest online gambling operator to follow suit is Guts.com, with its decision a result of a landmark court case last month in which for the first time in Europe an individual was penalized for gambling online at an unlicensed site. The unnamed person even had €65,000 of his winnings confiscated, and addressing the case, a Guts.com statement described the decision as going “against everything the [European Union} stands for.”