Legal challenges cast doubt over German sportsbook launches
Yesterday's approval of 20 operators likely to be challenged as unsuccessful applicants are expected to contest licensing process
The decision to grant 20 operators a German sports betting licence is likely to be challenged by unsuccessful applicants casting doubt over exactly when licensees will be eligible to launch in the country.
Yesterday eGaming Review revealed the list of 20 successful licence applicants, including the likes of Ladbrokes, bwin.party, Betclic and Betfair, but with a number of big names having seemingly been rejected.
Among those eGR understands to have unsuccessfully applied for a licence are German land-based bookmaking giant Tipico and a number of major online operators including BetVictor, with several operators expected to mount legal challenges against the licensing process in the coming weeks.
Licences are due to be officially awarded on 18 September following a 15-day standstill period, however, it is unclear whether or not successful applicants will be able to launch operations on this date.
It had been expected that unsuccessful applicants would be eligible for interim protection, preventing the country from immediately sanctioning any online gambling activity as long as legal challenges to the process remain outstanding.
BetVictor last year launched legal proceedings against the Hessian Ministry after being left out of an earlier licensing process round, which was later re-launched following widespread concerns.
The pending legal challenges mean licensed operators remain in the dark with successful applicants Ladbrokes and mybet both apprehensive about when it would be possible to begin accepting bets in the country.
A Ladbrokes spokesperson said yesterday the company would continue to monitor the situation in the country before formalising plans, while a source at another successful applicant said he feared the expected legal issues may prevent them from launching for a further year or two.
Sven Ivo Brinck, CEO of mybet, spoke of his concern in a statement issued yesterday having said that it was uncertain whether licences would be issued in two weeks’ time or when legal proceedings have been concluded.
“It is also unclear whether and subject to what conditions the competitors whose applications have been rejected may continue to operate their sports range in Germany while court proceedings are still in progress,” Brinck said.
Despite expected legal wrangles a source close to the matter told eGR there is a feeling within the market the regulator will want to issue licences quickly in order to establish state-owned sports lottery operator Oddset among the early front runners.
Oddset had previously attempted to have its licence application read early, a move which was ultimately unsuccessful after the Hessian Administrative Court of Appeal rejected its calls.