GGL Can Penalize Operators over Affiliate Breaches, Court Says

The Higher Administrative Court of the State of Saxony-Anhalt has ruled that Germany’s current gambling regulator, the GGL, is able to penalize operators that deliberately promote their products through affiliates that feature illegal products.

The court said that promoting on sites that have ties with unlicensed gambling games and operators is illegal and in breach of the 2021 State Treaty on Gambling Regulation. If not for this ban, the court argued, people would fall under the false impression that illegal offshore gaming is of the same quality and importance as licensed products.

As a result, Germany asked operators to remain vigilant and ensure that they are not working with affiliate marketing sites that promote illegal gambling to German audiences. Benjamin Schwanke, a board member of the GGL, pointed out that promoting on such sites undermines the credibility of the regulated German market.

Operators Should Be Responsible When Promoting their Products

As reported by iGaming Business, the current ruling stems from an earlier decision where the GGL fined an operator over deliberate advertising on an affiliate website that also promoted illegal gambling products. The operator’s name was not disclosed but the GGL announced that it had issued a five-figure fine.

In addition, the court noted that affiliates have a responsibility to inform users and tell them which operators are legal and which aren’t. According to the Saxony-Anhalt body, such sites must clearly cite the list of white-listed operators in Germany and warn players of the dangers of irresponsible gambling.

Furthermore, affiliates should avoid advertising to underage customers and should inform people about the therapy and exclusion options available to them.

The court used the opportunity to highlight other regulatory requirements, such as the prohibition of advertising iGaming as “free of charge” and the requirement to clearly state the benefits of a bonus offer.

GGL’s CEO, Ronald Benter, said that he considers these regulations to be fair and efficient. He promised that violators will receive appropriate fines. Benter warned that repeated beaches may even cost an operator its license.

A few days ago, on the other hand, the GGL announced a probe into daily fantasy sports games, which are becoming more and more popular outside of the United States. Previously, the German regulator had designated such offerings as illegal gambling but upon further consultation, the regulator decided to allow a limited number of DFS games.