German regulators continue accepting sports betting licence applications
Darmstadt Regional Council will not issue licences to operators until court appeal heard
The Darmstadt Regional Council (DRC) will continue to process applications from sports betting operators despite an April court ruling halting the award of new licences.
The statement comes after the authority in Hesse lodged an appeal against the prior Darmstadt administrative court. Last month, Austrian operator Vierklee successfully proved that the licence-award process being used was non-transparent.
In a statement released last week, the DRC said licence applications already submitted would be processed in order to ensure a “seamless continuation” of the licensing procedure should its appeal be successful. It will also process any new applications submitted.
However, the DRC has said it will not issue any licences to sports betting operators pending this appeal and has warned prospective operators they will be liable for any costs should the process be aborted a second time.
Addressing the move, DLA Piper partner Michael Stulz-Herrnstadt concurred with the DRC’s assessment, saying that it would be able to continue processing applications under the ruling.
“The DRC confirmed the court’s decision that sports betting operators that are currently active on the German market are sufficiently protected by the fact that they are treated during the ongoing licensing proceeding as if they were legally active on the German market,” said Stulz-Herrnstadt.
“In other words, applying for a German sports betting licence would potentially legalise the German sports betting operation of the applicant,” Stulz-Herrnstadt said.
Sports betting licences issued by the DRC will remain in force until July 2021, at which time a new Interstate Treaty on gambling is expected to legalise sports betting and online casino at a national level.
“The German legislator is clear that there should be German sports betting licences (now and under the upcoming 2021 Treaty),” DLA Piper counsel Christoph Engelmann explained.
“So if the current proceeding may be non-transparent and discriminatory – then a new proceeding has to be started, but the licensing requirements will not change substantially.
“Someone who applied for a licence in the current proceeding will be able to use the same documents (slightly updated) again in the next licensing proceeding,” Engelmann added.