German court rules regulator can penalise operators for affiliate advertising breaches
Higher Administrative Court of the State of Saxony-Anhalt reaffirms the powers of the GGL against “deliberate’ affiliate marketing
The Higher Administrative Court of the State of Saxony-Anhalt has clarified the actions Germany’s gambling regulator, the Gemeinsame Glücksspielbehörde der Länder (GGL), can take against licensed operators for “deliberately” advertising on affiliate websites that feature illegal offerings.
The court upheld the legality of a GGL bylaw which classifies linking to illegal games of chance websites as advertising unlawful activity, and clarified that such advertising is “incompatible” with the goals of the 2021 State Treaty on Games of Chance which forms the basis for Germany’s legal framework on gambling.
The court reaffirmed licensed operators are fully responsible for ensuring their affiliates only advertise legal gambling sites, and that the GGL’s power to penalise for non-compliance is a necessary part of the state’s commitment to fighting illegal gambling in the country.
Furthermore, the court emphasised operators’ and their respective affiliates’ “obligation to inform” players of the “white list” of licensed operators in Germany, likewise the provision of clear information on the dangers of gambling addiction, the non-participation of minors and the services available to those experiencing gambling-related harm.
Also standing up to judicial review was the ban on advertising for online casino games, online poker and virtual slot machines offered “free of charge”, as well as a reminder that all advertising with bonuses and discounts must clearly state the benefit amount and the reason and length of the campaign.
Lastly, the Higher Administrative Court ruled the justification for immediate enforcement by the GGL meets all legal requirements.
This court judgment stems from a decision made in March by the regulator to issue a five-figure administrative offence notice to a GGL-licensed operator for deliberately advertising on sites that also advertised illegal gambling offerings.
Ronald Benter, CEO of the GGL, said: “We consider these advertising regulations to be very good and justified. The GGL consistently monitors offers from legal operators. In the event of violations, we levy heavy fines.
“The withdrawal of the licence in the event of repeated violations of the provisions of the State Treaty on Gambling Regulation is a measure that we do not shy away from.”
Benjamin Schwanke, board member of the GGL, added: “The legal online gambling providers cannot have any interest in advertising on sites that also advertise illegal gambling. This damages the reputation of the operators.”