Landmark Ruling: German Court Blocks Foreign Streamers from Promoting Illegal Gambling

The German States' Joint Gambling Authority (GGL) made a key ruling to prohibit foreign streamers from promoting unlawful gambling operations, and the Higher Administrative Court of Saxony-Anhalt (OVG Sachsen-Anhalt) has supported this decision in a daring step to combat illicit online gambling. This historic decision, rendered on July 11, 2024, is a critical step towards the global enforcement of German gaming regulations.

Case Background

The court’s decision centered on a well-known German streamer residing outside Germany, who utilized the streaming platform "Kick" to promote and engage in illegal gambling activities aimed at a German audience. Despite the streamer’s challenge against the GGL’s prohibition order, the court upheld the ban.

Key Points from the Court’s Ruling

Territorial Principle Justified: The court affirmed that the territorial principle of international law supports the GGL’s actions. As the content was in German and targeted a German-speaking audience predominantly located in Germany, the advertising impact was considered to fall within German jurisdiction, thereby validating the enforcement of German regulatory authority.

Effectiveness in Hazard Prevention: The ruling emphasized that the GGL should address the issue directly at its source—the streamers promoting illegal gambling—rather than focusing solely on the streaming platforms themselves.

Conformity with European Law: The court confirmed that the ban on promoting unlicensed gaming is compliant with European law. These limitations are thought to be important for the general welfare, especially for player safety and the prevention of gambling addiction.

GGL’s Commitment to Player and Youth Protection

Ronald Benter, Chairman of the GGL, expressed his approval of the ruling, stating, "This decision sends a strong message! The GGL will enhance its efforts against foreign-based streamers who promote illegal gambling. Protecting players and youth is crucial, especially given the inherent risks of streaming."

Benter highlighted that streaming makes gambling activities more relatable and normalized, which can expose viewers, especially minors, to significant risks. Streaming has become a prevalent form of gambling promotion, particularly among younger audiences.

Impact on Youth

The ruling also referenced a 2022 report from the UK Gambling Commission, which found that 36% of 17 to 18-year-olds and 47% of 11 to 16-year-olds were influenced by gambling advertisements via streaming. This underscores the considerable risks posed to minors by such promotional activities.

In response, the GGL regularly includes provisions in gambling licenses to prevent licensed operators from using streamers for advertising. The decision by OVG Sachsen-Anhalt strengthens the GGL’s commitment to safeguarding vulnerable populations and sets a precedent for future regulatory actions against illegal gambling promotions.

A Critical Perspective: Motives Under Scrutiny

Some critics argue that the regulators’ motives might not be as pure as they seem. They suggest that German gambling authorities may be more concerned with protecting their own revenue streams from gambling activities rather than genuinely focusing on minor protection.

By targeting foreign streamers, the GGL is seen as reducing competition from outside actors, thereby ensuring that the domestic gambling market remains profitable for the state, which benefits from taxes and fees paid by licensed operators. Critics claim that the focus on minor protection could be a convenient excuse for a financial agenda aimed at controlling the gambling market and maximizing state revenue.

Moreover, the low Return to Player (RTP) rates (84%-88%) and stringent regulations within the legal gambling market have driven many German players to seek alternatives in the grey and black markets. These unregulated options often offer higher payouts and fewer restrictions, making them more attractive to players dissatisfied with the licensed platforms' strict rules and lower returns.

Conclusion

Streaming platforms like Twitch and Kick have a huge impact on promoting gambling, especially to minors. Canada should seriously think about banning the broadcast of all games for money. These streams not only bring in new players but also put the most vulnerable groups, especially kids, at risk of gambling addiction. This can lead to serious issues like financial trouble and mental health problems.

Ideally, platforms like Twitch and Kick should be strictly controlled or even blocked to stop the spread of illegal and harmful gambling. But we're not there yet. Many streamers who gamble or promote gambling are already on our blacklist. These streamers either play for fun without showing the real risks or advertise casinos with low RTPs that take advantage of players.