German court backs GGL’s blocking of Swiss payment provider
Regulator wins case with backing from the Halle Administrative Court against unnamed firm following its “widespread involvement” in unlawful activities
Germany’s Halle Administrative Court has ruled in favour of the German gambling regulator’s (GGL) decision to block a Swiss payment provider from facilitating transactions for illegal operators.
The court’s ruling means the GGL’s decision to unilaterally block the payment provider without specific instances of its role in illegal gambling was deemed valid.
Prior to the ruling, specific gambling offers would have been required to block a payment provider from offering its services to German players.
However, following the “widespread involvement” in illegal gambling of the unnamed firm, the decision was made to extend the prohibition order to allow the GGL to react quicker to illegal gambling.
In effect, the ruling means the GGL will be able to flex its regulatory muscles beyond Germany’s borders.
Under current German gambling regulations, the GGL is allowed to block payments connected to illegal gambling.
Commenting on the decision, GGL board member Ronald Benter said it showed companies that break the laws will face consequences.
He remarked: “This further success in the use of payment blocking shows that national borders are no obstacle to the enforcement of gambling law.
“We do not tolerate uncooperative behaviour by payment service providers. Companies that do not comply with the applicable laws must expect consequences.”
Following the ruling, the GGL made a further appeal to all payment providers to work with the regulator and comply with its legal requirements.
The GGL added: “The decision of the Halle Administrative Court is another sign that the GGL is also successful internationally in combating unlawful activities.”
Germany’s Higher Administrative Court of Saxony-Anhalt sided with the GGL last October in a similar case, rejecting Red Rhino’s application to legally allow gambling payments on its site.
The GGL fined the operator €50,000 in September for offering illegal gambling in Germany, and prohibited payment providers from sanctioning payments to the platform.
Earlier this month, the president of the German Sports Betting Association, Mathias Dahms, called for a “stronger fight” against black market operators, estimating “at least 30% of the German sports betting market is unregulated”.