German court slams licensing process

A ruling from the Administrative Court of Wiesbaden could spell the end of Germany’s troubled licensing process after the court heavily criticised the selection process.

Details of the 5 May ruling were released on Monday, and reveal that the court believes the procedure to select prospective sports betting licensees violates existing laws, is not transparent enough and restricts operators’ freedom to provide services.

“It essentially means that no licenses will be issued in the near future,” Martin Arendts, a leading German gaming lawyer, told eGaming Review. “The whole procedure has to be restart otherwise it isn’t going to work.”

While the experimentation clause of the Interstate Treaty on Gambling which permits the issue of licenses runs until 30 June 2019, delays of at least a year are now expected, meaning we may not see a full license issued until prohibitively close to 2019.

The 5 May ruling follows a similar ruling made by the same court in April. Although an appeal is expected, Arendts predicts the ruling will be upheld.

The court was particularly critical of the failure of the Hessian Interior Ministry to publish selection criteria before beginning the licensing process. The court also said that operators’ proposals for tackling gambling addiction should be given greater weight in the selection process.

Arendts does not remain hopeful for progress in the coming months, saying that a complete overhaul of the process is required.

“Operators should ask the European Commission to do something, and the applicants should ask for damages. The whole procedure has so many faults, and it is clearly the fault of the Ministry not to organise a licensing procedure that fulfils the criteria,” he said.