Despite Legislative Delays, a Jurisdiction in Germany Moves Forward

Despite formal delays, a jurisdiction in Germany is pressing forward with licensing.

Full Throttle for Darmstadt

Against a Supreme court order prohibiting the issuing of sports gambling licences, the Darmstadt Regional Council (DRC) in Germany is continuing to accept applications from operators.

The Delay Order

One of Germany's five federal Supreme Courts, the Darmstadt Administrative Court (DAC) issued the high prohibition in response to an objection from the jurisdiction's Vierklee. The Austria operator took issue with lack of transparency and bias in the licensing process—a claim which the High Court deemed meritorious enough to halt licensing whilst listening to the case.

Grounds for the Complaint

Vierklee found fault with the new Third State Treaty on Gambling's criteria for how to apply and whom to invite for application for a sports gambling license “confusing” and patronizing German companies with previous experience in the online gaming industry, while further quibbling with the lack of a uniform launch date.

Appeal

The dissenting DRC has filed an appeal of the suspension with a second Supreme Court: the Kassel Administrative Court (KAC). In the interim, the DRC continues to accept applicants, which positions the successful applicants for prompt reception of licenses in the event of higher court approval; however, if the appeal is denied, the application fees submitted by the operators will not be refunded.

Gaming Community Reaction

Of course, the local gaming community is up in arms.

The President of trade association German Sports Betting Association DSWV Mathias Dahms called the decision a huge blow, saying legislators have been making concessions to iGaming since a formal approval in 2012.

Outlook

With the state Treaty once again in the “stars” as Dahms calls it, 50 gambling companies remain twisting in the wind after filing applications for virtual sportbooks.

The next formal goal for iGaming proponents is to get a date for the KAC's review.