German Regulator GGL Imposes Massive Fine for Advertising Violation
Published March 19, 2023 by Lee R
Operators are going to be held to bear for violations in the embryonic German market, as a new fine reminds us.
German regulator the Gemeinsamen Glücksspielbehörde der Länder (GGL) has issued a five-figure fine to an unnamed operator for violation of regulator advertising rules.
The Advertising Infraction
According to the GGL, the operator was cited for the undisclosed amount because it
“deliberately advertised” offerings on websites also advertising illegal gambling offerings.
The Legal Body
The regulator said the infraction violated Germany’s Fourth State Treaty on Gambling, which came into force in July 2021 and launched iGaming in the long-awaited German market.
GGL Duties
The GGL was put in charge of gambling regulation from 1 January 2023 on the heels of taking the reigns of the illegal gambling enforcement brief on 1 July 2022.
Germany’s Regulation Structure
This re-organisation centralized authority for gambling enforcement in the German market after many years of enforcement by the individual state ministries within Germany.
GGL SPokesperson Comments
GGL CEO Ronald Benter said:
We consider these advertising regulations to be very good and justified. The GGL consistently monitors offers from legal providers.
GGL Policy Enforcement
Benter further commented on GGL policy that the fines reflect:
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 Gaming is a measure that we do not shy away from.
GGL Board Member Comments
GGL Board Member Benjamin Schwanke further commented on the need for operators to protect their reputation and remain compliant:
The legal online gambling providers cannot have any interest in advertising on sites that also advertise illegal gambling. This damages the reputation of the providers.
GGL Challenge
In a market with a long history of gambling, the GGL is working hard to establish continuity and compliance for the German jurisdiction.
Germany’s Gambling History
Land-based casinos in Germany stretch back to the 1800s, with the individual state enforcement system set up after World War II.
Streamlining Restrictive Policies
The restrictive casino laws generally governing what was originally lotteries, sports betting, and horse racing were the major obstacle to uniform iGaming regulation in the massive German market, and the GGL still has its hands full establishing an equitable uniform system in the regulated market which is still barely a year old.
Market Size
With the overall legalized gambling industry bringing in billions of euros every year, the task of managing the market is going to rely on effective enforcement of violations such as the most recent fine levied by the GGL.
Outlook
Hopefully, operators can understand and hold the line efficiently and learn from the latest fine in one of iGaming’s most powerful markets.
