Federal court backs GGL in legal dispute over advertising rules

Germany’s Federal Administrative Court has sided with the national gambling regulator (GGL) in a case against a social lottery provider. 

GGL accused the provider of unlawful advertising after it was found that the operator’s logo has been included in educational material promoting its charitable work supporting people with disabilities. 

The plaintiff (the social lottery provider) then filed an appeal with the Administrative Court of Mainz against GGL’s conclusion, arguing that no references were made to its gambling offer other than its logo – hence the use of branding did not constitute a breach of Germany’s State Treaty of Gambling.

The appeal was upheld by the first court. A second appeal followed – this time filed by the GGL with the Higher Administrative Court of Koblenz. There, a partial overruling of the first decision was reached, leaving both the plaintiff and the defendant unsatisfied as a result.

This led to another appeal being filed by each of the parties involved, leading the case to the top level of Germany’s administrative court justice system – the Federal Administrative Court of Mainz (BVerwG). 

GGL’s appeal was granted, with BVerwG fully dismissing the plaintiff’s claims, concluding with the statement: “The plaintiff’s logo stands for both his charitable activity and his lottery offer. If it is printed on the title page of his information and educational materials, this also improves the image of his lottery.

“At the same time, it motivates us to support the charitable activities, which are known to be financed mainly by lottery revenues.

“Because the logo is known to stand for the lottery as well as for the promotion of inclusion, it also improves the image of the lottery and motivates the average viewer to promote the plaintiff’s charitable activities through lottery participation.