German licensing process attracts further criticism

A German court has referred several questions regarding Germany’s sports betting licence procedure to the European Court of Justice (ECJ), highlighting perceived inconsistencies and a lack of transparency.

The district court of Sonthofen has asked the ECJ to clarify the criteria for a German sports betting licence related to the controversial Interstate Treaty, which came into effect on 1 July 2012.

Among the inconsistencies questioned is a lack of published selection criteria, with applying operators left in the dark over what detail was required to be considered.

Further doubts have been raised over how 14 applicants were initially accepted and passed through to a second licensing stage, only to be informed at a later date that they had failed to meet the minimum requirements for a licence.

The case has also raised questions over how German law firm Cornelius, Bartenbach, Haesemann & Partner (CBH) was allowed to advise both the Hessian Ministry and independent lottery operators regarding the licensing procedure.

The development comes less than a week after the deadline for applicants to re-submit revised applications passed, starting an additional phase in which the regulator is to check the submissions and invite further comment from applicants.

But with no time frame attached to this phase Patrick Schwarzbart, a lawyer at legal firm DLA Piper said that no one knows when the first licences are likely to be granted and added that it may not be until 2015.