German state to issue first temporary online betting permits
But stakeholders downplay importance of the permits in the battle for national regulation
The German state of Hesse has announced plans to issue âorders of toleranceâ (Duldungsverfügungen) to allow online sports betting in the state while national betting legislation remains tied up in the courts.
Operators can apply for the orders from 15 September until 15 November, providing certain requirements are met, but are not official licences since an operator would need an order for each of Germany’s 16 states.
However stakeholders in the German market downplayed the significance of the Hessian announcement, suggesting firms might be better served continuing to operate in the grey market while the wider legal battle plays out.
Martin Arendts a German gaming lawyer, said: “From my point of view it is not a big step. This is the State of Hesse effectively declaring it cannot pass regulation in consistency with EU law and constitutional law and will not grant proper licences.”
A spokesperson for Tipico also said the company was examining the process and its consequences but had not yet decided whether to apply for an order.
The legislation to issue 20 national sports betting licences remains tied up in the courts after the Court of Justice of the European Union ruled the finite number of licences broke competition laws.
Hesse, which has long been the flagbearer for regulated sports betting in Germany, is the first state to introduce Duldungsverfügungen for online betting.
Rhineland-Palatinate has issued similar orders for land-based betting, with Bavaria expected to follow.