Germany to issue first IP blocking order to Lottoland – Compliance

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Germany’s new regulator, the Glücksspielbehörde, has asked internet service providers to launch their first blocking order under the country’s new regime, against lottery operator Lottoland.

The body took over responsibility for enforcing laws against unlicensed gambling on July 1, before taking control of all aspects of regulation in Germany on January 1, 2023.

Last month it revealed the first details of its action plans, promising to use payment and IP blocking to stop unlicensed companies from taking bets.

Now the regulator has said it has already taken action to block certain operators’ sites, specifically mentioning lottery betting firm Lottoland.

The Glücksspielbehörde said the lottery betting industry in general risked confusing gamblers as to the nature of the product they are using, and noted that lottery betting was not permitted under the Fourth Treaty. State of the Country’s Gambling.

“The business network, which operates as Lottoland, has offered illegal gambling for years,” the regulator said. “This offer is particularly precarious because many players believe they are entering a Lottoland lottery game. However, this is not the case”

In terms of blocking payments, the regulator noted that the state of Niedersachsen was able to block payments before the Glücksspielbehörde took over. However, board member Benjamin Schwanke said he hoped the effectiveness of the payment block could be improved, as the new body would have more power to put pressure on payment providers.

“We are interested in cooperation with payment service providers, but we can also initiate appropriate administrative procedures if the payment service provider does not meet its obligations, and we have effective instruments to execute orders”, Schwanke said.

Meanwhile, Glücksspielbehörde board member Ronald Benter pointed out that the regulator can also report operators to tax authorities, forcing them to pay a tax on the customs they receive from Germany.

“The reporting of gambling providers to the responsible tax authorities is one of the most

effective instruments for combating illegal gambling on the Internet. Because with the taxes

debts, the probability of getting a license in the future is almost nil,” Benter said. “If you have tax debts in Germany, you also risk being refused permits abroad. Licenses already granted may also be revoked.

Currently, only a small number of operators are licensed to operate sportsbooks and online casinos, and those that are are subject to strict rules, including a €1 wagering limit for slot machines. In addition, operators must pay 5.3% of their slot turnover in tax.

As a result, the online licensed industry has faced stiff competition from unlicensed companies.

Only three operators – Mernov, Tipwin and Mybet – are currently licensed to offer online slots, and none to offer online poker, although authorities in Sachsen-Anhalt have said nine more licenses are expected to be on the way.

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