German online bookmakers launch lawsuit over strict governing rules
Legal action taken against the State of Hesse railing against in-play market restrictions driving players to the black market
Germany’s 33 licensed sports betting operators have come together to file a suit against the state of Hesse concerning the tight regulations governing the vertical.
The industry is protesting against the fact the legislation laid out by the Third State Treaty on gambling has, they feel, put them at a disadvantage.
The German Sports Betting Association (DSWV) has raised concerns that the restrictions placed on operators are pushing players towards the black market after survey by the trade body found that 240 sportsbooks sites were available in Germany despite only 36 operators being licensed.
The rules mean bookmakers are restricted to offering the 1X2 market and total goals once matches go in-play. Add in the €1,000 (£855.61) a month spending cap across the board and it’s clear to see why the licensed industry is up in arms.
Luke Andric, DSWV GM, said: “For every legal provider, there are multiple providers without permission. In the meantime, there are also numerous other websites that evade any control, regulation and taxation.
“There is a risk that a substantial part of the bets placed by German customers will migrate to illegal black market providers,” he added.
A spokesperson for Regional Council of Darmstadt, which will be representing the defendant, told EGR: “The lawsuits of the sports betting organisers are directed against ancillary provisions of the permits granted to them. The respondent is the State of Hesse, represented by the Darmstadt Regional Council.
“All holders of permits for the organisation of sports betting on the internet and in the stationary area have filed lawsuits against individual ancillary provisions in the respective permits. All in all, there are about 100 lawsuits since there are several lawsuits from the various providers.”
The State of Hesse was in charge of overseeing the licensing of sports betting at a national level and has, at multiple points, put stumbling blocks in front of operators.
Last year, the Third State Treaty was replaced by a new framework which allowed online casino to be offered nationwide for the first time while including similar sports betting rules.
However, operators are also limited in their slots offering in Germany, with a €1 cap on spins and a five-second gap between each round.
There is also an eye-watering 5.3% turnover tax on slots (as well as poker), which means the industry has been forced to slash RTPs from a sector-wide 95% or higher to around 90% or even lower.