Schleswig-Holstein court upholds German online casino ban

A Schleswig-Holstein court has upheld a decision that Germany’s ban on online casino gaming is compatible with European Union law.

The ruling from the state’s higher administrative court comes after Malta-based operator NetBet launched a legal case against Schleswig-Holstein in 2018 when it was ordered to cease offering online casino gaming by local regulators.

As part of its appeal, NetBet said the German Interstate Treaty banning casino was illegal under European Union law, preventing restrictions on the flow of goods and services between member states.

NetBet highlighted evidence that there was no more risk involved in online casino gaming than sports betting, and asserted the German black market for online gaming was evidence that the online casino ban wass not working and should be removed.

However, judges in the court found the evidence provided by NetBet to be inconclusive in proving that online casino gaming was not more risky than sports betting.

Judges also highlighted the fact that Schleswig-Holstein itself authorizes online casino licensing through its own internal market, but still is targeted by illegal unlicensed operators, negating the argument that authorizing online casino would eliminate the black market.

In addition, judges also said NetBet could not rely on the forthcoming regulation of the national market in 2021 because at the moment it is unclear whether online casinos will be legalised or if NetBet would fulfill the future licensing requirements.