Swiss payment provider banned over illegal gambling in Germany

The Halle Administrative Court has supported the decision by Germany’s federal gambling regulator, GGL, to block a Swiss payment provider. The court upheld the regulator’s order, preventing the unnamed provider from processing payments for unlicensed gambling operators.

The court ruled in favor of a broad interpretation of the ban, applying it to both current and future unlicensed gambling offerings, without requiring prior notification of specific companies.

Ronald Benter, a GGL board member, commented on the ruling: “This success in using payment blocking demonstrates that national borders do not hinder the enforcement of gambling laws. We will not tolerate non-compliance from payment service providers. Those who do not follow the law should expect consequences.”

The GGL also emphasized its expectation that payment service providers adhere to legal requirements and cooperate with the regulator.

Illegal Gambling in Germany

Last month, the GGL reported receiving 1,500 public tip-offs regarding online gambling through its reporting portal since taking on regulatory duties last year. Half of these reports involved illegal online gambling, a significant issue for licensed operators in Germany. The other half concerned potential irregularities among licensed operators.

In the same period, the GGL inspected over 1,890 websites and 483 gaming providers and advertisers for illegal gambling activity. As a result, it initiated 113 prohibition proceedings, with 63 of them leading to the cessation of activities by the provider or advertiser.