German Watchdog Imposes First Fine on Gambling Firm

A gambling firm in Germany has received the country’s first-ever fine for breaching advertising guidelines.

The company, which hasn’t been named by the German regulator Gemeinsamen Glücksspielbehörde der Länder (GGL), was issued with a “severe fine” of five digits at the beginning of the month.

It’s the first fine since the Fourth State Treaty on Gambling was introduced in July 2021 that a gambling licence holder has been given a financial penalty for failing to comply with advertising regulations. Back in July last year GGL was created to oversee illegal gambling and advertising via IP and payment blocking. In January this year it was given complete control of gambling regulation in the country. In the past gambling enforcement was carried out by individual states.

This new breach of the State Treaty on Gambling was committed after the licence holder deliberately advertised their services on affiliate websites which also permitted unregulated gambling adverts.

A spokesman for the GGL said: “A five-digit administrative offense notice was issued to a provider of games of chance on the Internet who, after receiving the state gambling license from the GGL, deliberately advertised his offer on websites that also advertised illegal offers.”

The GGL’s CEO, Ronald Benter, warned that the enforcer has no hesitation in revoking a license from a betting services provider who continued to flout the regulations with repeated violations.

He added: “The withdrawal of the permit in the event of repeated violations of the provisions of the State Treaty on Gambling is a measure that we do not shy away from.”

The desire to advertise on illegal sites made no sense anyway, Benter said, since it only served to damage the license holder’s reputation within the sector.

Germany isn’t the only European country to come down hard on gambling license holders who breach rules. The Netherlands Gaming Authority de Kansspelautoriteit (KSA) has upped it is enforcement activities this year, giving on the spot fines to both gambling license holders and illegal gambling providers.

Only two ago, for instance, Bet365 received a €400,000 from KSA for breaching the country’s advertising guidelines. The operator, Hillside New Media Malta was found guilty of publishing adverts which were deliberately targeted at young adults (aged 18 to 24). The regulator was alerted after an 18-year-old received several emails from Bet365 encouraging them to join and offering various bonuses. Following an investigation, it was discovered other youngsters had received similar communication.