German licensing halted amid legal challenges
Newly-licensed operators could face two-year delay before going live after around 12 unsuccessful applicants lodge appeals
The German sports betting licensing process has been halted by the Administrative Court of Wiesbaden after as many as 12 unsuccessful applicants lodged legal challenges, potentially delaying the launch of the market for another two years.
The Hessian Interior Ministry recently awarded 20 operators with provisional licences and initiated a stand-still period which was due to end today (18 September), after which full licences were to be issued enabling successful applicants to launch online sportsbooks.
However a number of unsuccessful applicants have legally challenged the process and the Administrative Court of Wiesbaden has ordered it to be halted while legal challenges are to be heard.
German land-based giant Tipico confirmed it was one of the challengers and CEO Jan Bolz said he welcomed the decision to put the brakes on the licensing process, describing the delay as “confirmation of our fundamental objections against this whole procedure”.
Local media reports suggested that international operators including BetVictor, bet365, Sportingbet and Lottomatica are also among those to have mounted challenges, assembling various local legal firms with knowledge of the gambling market.
Betclic is also understood to have mounted a legal challenge despite the group’s Bet-at-home.com brand being one of the 20 to receive a provisional licence earlier this month after its other brands were turned down.
Legal challenges were widely expected after the process, which began more than two years ago, was continually questioned by operators over a perceived lack of transparency and fairness.
BetVictor was one of the first to launch legal proceedings against the Hessian Ministry after it was initially turned away from an earlier licensing round, causing it to be re-started at a later date after a number of concerns were raised.
The Hessian Interior Ministry also risks being undermined by repeated calls for the German state of Schleswig-Holstein, which went on its own to issue a number of online betting licences before agreeing to join the controversial Inter State Treaty, to walk away from the process.