German court ready to hear case against restrictions on sports betting kiosks

Four betting operators have lodged a formal legal case in relation to regulations contained in Germany’s first state treaty on gambling. The regional court of Stuttgart, the capital city of south-western state Baden-Württemberg, will play host to what could be a defining case in Germany’s approach to casino operations.

Currently, Section 21(2) of the ‘GlüStV’, the first piece of legislation attributed to the country’s fledgling gambling marketplace, determines that retail sportsbooks and traditional casino games cannot be offered to customers within the same building. Clearly, given either enterprise would have a captive audience to engage if both activities were permitted under one roof, the rule serves to undermine a significant commercial opportunity.

The complaint filed by the four gambling firms suggests this regulation should be withdrawn. Furthermore, it alleges that the initial introduction of Section 21(2) was not followed by any guidance or support to those concessionaires who already had functioning sportsbooks and casino verticals operating within the same building.

Baden-Württemberg feels like the ideal location to conduct the hearing. The state has developed its own regulatory criteria as a local extension to Section 21(2), putting in a formal measurement to the distance tolerated between a company’s various gambling offerings. Section 42(1) of the LGüG, the jurisdiction’s own adaptation of the native gambling framework, dictates that sports betting and casino facilities must be positioned at least 500m apart from one another.

The case is currently scheduled to be heard towards in November.