Gluecksspiel (GGL), the Federal Authority of German Gambling, is authorized to enforce penalties on licensed online gaming operators that are advertised on affiliate websites linked to unlicensed businesses, according to a ruling by the Higher Administrative Court of Saxony-Anhalt.
GGL Can Penalize Licensed Firms Doing Business with Illegal Affiliate Sites
The judgment affirms the GGL’s power to penalize licensed online gaming firms that promote their offerings via so-called “affiliate sites” that also advertise illegal gambling services. The practice is in breach of the advertising provisions of Germany’s State Treaty on Gambling.
In March 2023, the regulator for the first time imposed a five-digit fine on a licensed operator for committing such a violation. The agency reminded licensed firms not to do business with affiliate sites that promote illegal gambling to maintain their integrity.
The issue had been referred to the Court of Saxony to seek clarification on the GGL’s remit concerning the enforcement of Germany’s gambling advertising rules, and the judgment came out in favor of GGL.
Promoting Illegal Games Violate Germany’s Advertising Rules
The ruling states that affiliate sites promoting illegal games of chance violate the country’s advertising rules. Therefore, licensed operators should not advertise their services on those sites to avoid giving the impression that authorized gambling is of equal importance to illegal gambling.
