German Betting License Application Process Goes On Despite Legal Snag

The Darmstadt Regional Council said last week that it would continue to accept and review sports betting license applications, although a recent ruling by the Darmstadt Administrative Court blocked the issuance of such licenses.

The Darmstadt Regional Council and the Hessian Ministry of the Interior are responsible for accepting, processing, and approving/rejecting license applications for the provision of sports betting on the territory of Germany under the country’s Third State Treaty on Gambling, which took force on January 1, 2020.

The recently adopted law is planned to remain in effect until July 1, 2021 when a new, permanent framework will be enforced.

The Third State Treaty on Gambling permits the provision of online sports betting across Germany’s 16 states, but prohibits other online gambling activities. Those are set to become legal when the nation’s permanent law is implemented next year.

License Application Process Unhampered by Recent Court Ruling

The Darmstadt Regional Council said last week that despite the recent court ruling banning the issuance of sports betting licenses, it would continue to accept license applications from interested sports betting operators and to review these.

The court challenge was brought by Austrian sports betting operator Vierklee. The bookmaker argued that Germany’s sports betting licensing process was marred by lack of transparency and favored companies that had previously been active in the local digital wagering space.

The Darmstadt Administrative Court ruled last month that the licensing process indeed lacked in transparency regarding the criteria interested sports betting operators had to meet in order to obtain licenses to operate in Germany.

The court further said in its ruling that the lack of a uniform date from which all licensed operators could go live with their offering in the regulated German market was discriminatory and that it gave incumbents an advantage.

However, despite siding with Vierklee, the court did not specify whether its ruling effectively put an end to the reorganization of Germany’s sports betting market and invalidated the Third State Treaty on Gambling.

Awaiting Results from Appeal

The Darmstadt Regional Council appealed the negative ruling in the Kassel Administrative Court and awaits that court’s decision on the matter.

The council said last week that while it waits to see whether its counter-challenge would prevail, it will continue to accept and assess applications. This way, it would ensure that the actual license issuing process will be able to restart smoothly should its appeal succeed.

However, the council warned applicants that if the appeal fails, it would not be liable for any costs related to the submission of license applications.

The council said earlier this year that more than 50 sports betting operators had applied or had committed to applying for a license to operate in a regulated environment.

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