The German regulatory body has stated that certain daily fantasy sports activities qualify as illicit gambling

After evaluating daily fantasy sports (DFS) offerings in accordance with Germany’s Fourth Interstate Treaty on Gambling, the Gemeinsamen Glücksspielbehörde der Länder (GGL), the country’s federal gambling regulator, has determined that some DFS products constitute unlawful gambling.

During a hearing, the regulator identified that a popular provider had exited the market as a consequence of its review.

GGL board member Ronald Benter stated that their rulings were being acknowledged and implemented promptly by providers, safeguarding customers from illegal offerings and the danger of developing a gambling addiction.

Benjamin Schwanke, CEO of Germany’s federal gambling regulator GGL, emphasized the need for cooperation among authorities to combat illegal gambling and protect consumers. Schwanke stated, “Fighting illegal gambling is an important consumer protection issue and can only be effective if all other authorities, such as law enforcement agencies, work together.”

In a recent court case, GGL successfully enforced its ruling against a television broadcaster that offered unlicensed online games of chance in the form of pay-to-play “competitions”. The court ruled that any contest offering cash prizes and requiring payment for entry, regardless of the stakes, qualifies as gambling under Germany’s federal gambling legislation, the Fourth Interstate Gambling Treaty (GlüNeuRStv) which was amended in July 2021.

As Germany’s gambling market continues to develop, GGL has called for greater cooperation from operators. While the regulator has praised the collaboration of operators thus far, it believes more can be done to improve the market.