The brokerage of private sports bets remains provisionally permitted, subject to conditions aimed at combating gambling addiction. This was decided by the Higher Administrative Court of Rhineland-Palatinate in Koblenz.
The Supervisory and Service Directorate had prohibited the applicant, based in Bad Kreuznach, from brokering sports bets with immediate effect. The Administrative Court rejected the application for an order suspending the effect of the objection against the prohibition order. The appeal lodged against this was successful: The Higher Administrative Court allowed the applicant to continue offering sports bets until a decision is reached on the merits. Thus, the Higher Administrative Court has changed its previous jurisprudence (cf. Press Releases Nos. 38/2006 and 21/2007) on the basis of the State Treaty on Gambling and the State Gambling Act, which came into force on January 1, 2008. Decisions on a further 59 appeals will be made shortly.
The prohibition of private sports bets, intended to secure the monopoly of Lotto Rheinland-Pfalz GmbH, would only be lawful as an infringement of the professional freedom of other betting intermediaries if the state of Rhineland-Palatinate had implemented the requirements of the State Treaty on Gambling for combating gambling addiction. According to this, the federal states would have to limit the number of acceptance points and restrict advertising to information and education about the possibility of gambling. A concept for limiting acceptance points, yet to be established by the state under the State Gambling Act (LGlüG), could not be enforced against Lotto Rheinland-Pfalz GmbH. This is because the state has no decisive influence over Lotto Rheinland-Pfalz GmbH, after the Federal Cartel Office had prohibited it from acquiring the majority of the business shares. Furthermore, the advertising of Lotto Rheinland-Pfalz GmbH goes beyond the still permissible information and education. Among other things, participation in gambling was specifically encouraged in connection with the 2008 European Football Championship.
However, the provisional permit for the brokerage of sports bets by private providers could only be granted subject to conditions aimed at combating gambling addiction. In particular, the private betting intermediary must not accept sports bets from minors, individuals demonstrably at risk of gambling addiction, or over-indebted persons. A notice regarding the dangers of gambling addiction must be displayed in a suitable location within the business premises. Furthermore, any advertising for the brokerage of sports bets is impermissible. Finally, the betting intermediary must tolerate unannounced official inspections of its premises.
Decision of the Higher Administrative Court of Rhineland-Palatinate of august 18, 2008 – File number 6 B 10338/08.OVG
Source: Press Release No. 38/2008 from the Media Office of the Higher Administrative Court of Rhineland-Palatinate
Attorney Michael Ullrich, LL.M. (Information Law)
Email: mailto:m.ullrich@goldberg.de
