SBC News Voice of the Sports Betting Industry
The German Casino Association ‘Deutsche Spielbankenverband’ (DSbV) said that payment blocking orders of unlicensed online gambling operators should be at the ‘top of the agenda’ for German lawmakers.
The DSbV made its statement following the aftermath of the Wirecard AG’s multi-billion euro scandal, which it stated has rocked confidence in German banking and payment processing laws.
In its statement, the DSbv underlined that Wirecard fraudulent activities were known to German regulators since 2017 as the payment processor’s illegal transactions were revealed by the publishing of the ‘Panama Papers’.
DSbv CEO Otto Wulferding stated that German banks have knowingly participated in enabling unlicensed online gambling transactions, thus taking advantage of incoherent gambling laws.
“On Wirecard, the topic of monetary transactions for companies such as online casinos should be high on the agenda,” Wulferding said.
He added that regulatory inaction since 2017 has led to ‘far-reaching consequences’ on the German market, which can no longer control the growth of unlicensed online gambling operators targeting national consumers.
The DSbv pointed to market research undertaken by Goldmedia, which ‘reported earnings of €2.1 billion for online casinos in 2019 – an increase of 6.2 percent compared to 2018 figures’.
Observing current market dynamics, the DSbv stated that German consumers are completely open to being targeted by unlicensed operators, freely promoting their services through online advertising and TV networks.
Meanwhile, market safeguards have been left at the domain of private enterprises such as VISA, who at the start of 2020 terminated German online gambling transactions.
“Online casinos without a German license are evading the regulatory framework in Germany,” concluded Wulferding. “They do not meet the requirements that apply to licensed casinos. This means that the guest can carry out their bets and thus deposits and withdrawals safely and reliably.”
