German Online Gambling Takes a Late Hit

Prospects for regulation of betting in Germany have hit a serious snag as a result of an 11th hour suspension of the licencing process by the Wiesbaden Administrative Court in Hesse.

Holding the Bag

Leading operators Bet-at-home, Bwin, Digibet, Ladbrokes and Betfair were among a group of 20 leading global online gambling operators left holding the bag when the court caved in to a group of unhappy operators who were denied licences in their initial applications. This dealt a serious blow to online gambling in canceling the licencing process by which the Hesse Ministry of the Interior and Sport was to award successful applicants.

Mybet Holding, one of the successful applicants, summed up the concerns of all the scuttled licencees, saying “It is not foreseeable for mybet Holding when exactly the licences will now be issued.”

Objections

The objections came in the form of protests submitted to the Court of Wiesbaden

challenging the Hesse Ministry’s procedures by which it was issuing the new licences, fast on the heels of the September 3, 2014 award of 20 new licences by the The Hesse Ministry thereof.

In addition to the global operators, the licencees included domestic bookmakers as well. Bet365, Lottomatica, Tipico and BetVictor were among those operators who appealed the decision, based upon a legal claim of unjust and uncommunicative grounds upon which their licencing applications had been denied.

The protesting operators also criticized a lack of transparency in the application process.

One Year Setback

After issuing what it called an interim order, the Administrative Court of Wiesbaden provided no further insight into when and how the licencing process will be reviewed again. Sources in Germany estimate a delay of at least 12 months.