GGL Wins Legal Battle Against Swiss Payment Provider

Germany’s Gambling Regulatory Authority (GGL) has won a significant legal victory against a Swiss-based payment provider, marking a crucial step in its fight against unlicensed gambling operations. The ruling, handed down by the Halle Administrative Court, underscores the GGL’s growing authority and international reach, reinforcing its commitment to curbing unlawful gambling activities. Discover how this victory sets a powerful precedent for tackling the black market in gambling.

German Regulator GGL Wins Legal Battle Against Swiss Payment Provider Over Gambling Payments

In a significant legal win, the German Gambling Regulatory Authority (GGL) has successfully upheld a prohibition order against an unnamed Swiss payment service provider, barring the company from handling payments for unlicensed gambling operations. The ruling, delivered on 2 October by the Halle Administrative Court, represents a pivotal moment in the GGL’s efforts to combat unregulated gambling and limit the financial support of unauthorized operators.

The court’s decision is notable for its broad scope, allowing the prohibition to apply not only to known illegal gambling platforms but also to potential future unregulated activities, giving the GGL enhanced regulatory power over payment providers who facilitate illegal gambling transactions.

Key Points:

1. GGL Victory: The GGL has won a legal battle against a Swiss-based payment provider, reinforcing its authority to block payments for unlicensed gambling operators.
2. Broader Prohibition: The ruling applies to both current and future unregulated gambling operations, allowing the GGL to extend its regulatory enforcement beyond Germany.
3. International Impact: The decision signals the GGL’s growing influence and success in international efforts to curb illegal gambling activities.

Ronald Benter, CEO of the GGL, emphasized the importance of the court’s decision: “This further success in the use of payment blocking shows that national borders are no obstacle to the enforcement of gambling law. We do not tolerate uncooperative behavior by payment service providers. Companies that do not comply with applicable laws must expect consequences.”

Expanding Regulatory Reach

The ruling is a testament to the GGL’s growing ability to enforce gambling laws beyond Germany, as payment service providers operating in other countries can now be held accountable for supporting unlicensed gambling activities. By targeting financial transactions, the GGL is effectively cutting off a critical lifeline to the black market gambling industry.

The GGL has been actively using payment blocking as a tool in its regulatory arsenal. In recent years, the authority has worked with banks and payment providers to block transactions related to unlicensed operators. The cooperation of financial institutions has played a key role in the GGL’s strategy to reduce the availability of illegal gambling platforms.

A Tool Against the Black Market

Payment blocking has become an essential method for the GGL to combat unregulated gambling. According to the regulator, many payment providers, particularly banks, have been cooperative in enforcing payment prohibitions, often acting swiftly to block transactions to unlicensed gambling sites. This cooperation has allowed the GGL to make significant progress in its mission to rein in the black market.

Despite its successes, the GGL continues to receive tips and complaints related to potential regulatory violations. Since the beginning of 2023, the authority has received more than 1,500 suspected violation reports, though many have been too vague to pursue. However, combined with the GGL’s own investigations, these reports have enabled the review of over 1,860 websites and 438 gambling providers for illegal activities.

In 2023 alone, the GGL initiated 133 prohibition proceedings, leading to the cessation of activities by 63 illegal online gambling operators and advertisers.

Future Outlook

This latest legal victory against the Swiss payment provider further strengthens the GGL’s ability to regulate the gambling industry both domestically and internationally. Benter urged other payment service providers to comply with the GGL’s regulations: “This ruling is another sign that the GGL is also successful internationally in combating unlawful activities.”

The regulator’s efforts demonstrate its commitment to reducing illegal gambling by cutting off the financial networks that support these operations. As the GGL continues to block unlicensed gambling activities and ensure compliance from payment providers, the fight against the black market in gambling is set to intensify.

The German Gambling Regulatory Authority (GGL)‘s legal victory against a Swiss-based payment provider marks a critical step in its fight to curb unlicensed gambling activities. By upholding the prohibition order, the GGL has reinforced its power to regulate gambling beyond Germany’s borders and block payments supporting illegal operators. With ongoing efforts to combat the black market through payment blocking and cooperation with financial institutions, the GGL is setting a strong precedent for international regulatory enforcement.