Following a legal challenge by the Austrian sports betting operator Vierklee, German sportsbook licensing has been put on hold. The complaint filed by the Tirol-based operator stated that the license procurement process was discriminatory and showed a lack of transparency.
This court challenge represents yet another major delay in the process of legalization of sports betting in Germany. Ever since 2012, when the State Treaty on gambling was drafted, the implementation of the necessary framework has been advancing excruciatingly slow.
Sports betting denied access to a regulated market
Had it not been for Vierklee's complaint, 99% of Germany’s sports betting operations would have become legal. The deadline for the regulatory framework was July 1, 2021. Considering the current situation, the chances of this deadline being met are quite low.
The president of The Deutscher Sportwettenverband (DSWV), Germany’s leading sports betting operator, Mathias Dahms, was deeply disheartened by the news, as he said:
Sports betting providers in Germany are once again denied access to a regulated market and thus legal certainty. We hope that the authorities can continue and quickly issue permits.
Even if the legal issue is promptly resolved, it is unclear when the licensing process can resume, as Germany is currently on lockdown due to the COVID-19 health crisis.
On the way to a market-compliant gambling scene
Sports betting is not the only sector undergoing intense scrutiny. As of March 2020, Germany has also enacted gambling laws that, among other things, would limit the stake per spin (in slot games) to €1. The other measure included in the new laws is the creation of a regulatory agency. If these proposals are approved, that would mean online casino games could become legal as of July 1st of this year.
Comments
Add comment