German sports betting licence process halted by courts
German sports betting association laments suspension after Austrian operator lodges successful complaint in court
Legalised sports betting in Germany was dealt a blow yesterday as the Darmstadt Administrative Court suspended the licence procurement process for operators until further notice.
The suspension occurred after an Austrian operator, Vierklee, successfully asserted that the process to secure a licence was not transparent.
The official court ruling has not been released but it represents yet another blow to operators.
The state of Hesse has been overseeing the licensing of sports betting operators on a national level as part of the amended Interstate Treaty (IST) in Germany, with the Darmstadt Regional Council administering the process on behalf of the state. These interim licences had previously been valid until July 2021, at which time a newly greenlit Interstate Treaty authorising sports betting and online casino at a national level will kick in. However the status of this interim licensing process is now in jeopardy with today’s ruling.
Deutscher Sportwettenverband (DSVW), the German sports betting association, has noted that the decision is a “big blow” for operators.
DSVW president Mathias Dahms said: “The decision of the court is a big blow to our members. Even though we were promised concessions by the legislator back in 2012, an early approval, which should have been made possible by the State Treaty on Gaming, which has been in effect since the beginning of the year, is now once again in the stars.”
Dahms went on to praise those working within the Hessian state and the Darmstadt Regional Council for their efforts so far in and was optimistic the issues could be resolved soon.
He continued: “Sports betting providers in Germany are once again denied access to a regulated market and thus legal certainty. The applicants have once again invested a lot of effort and energy into the process and prepared for the regulated market.
“I also feel sorry for the employees in the Hessian Ministry of the Interior and the Darmstadt Regional Council, which have been very committed in the past few months to finally make the permit process a success. We hope that the authorities can continue to issue permits quickly,” he added.
Authorities in Hesse have been licensing operators for sports betting since January, despite a slower than expected take-up from operators for licences initially. The Darmstadt Regional Council will be Germany’s largest gambling regulatory entity by the end of 2020, but will not be given the job of regulating the national market, with that responsibility being passed to authorities in Saxony-Anhalt.
All 16 German states have ratified the latest Interstate Treaty, which includes the legalisation of online casino operations in Germany for the first time.