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German Court Upholds Illegality on Secondary Lotteries

In Germany, A Higher Regional Court has vindicated the country’s prohibition against secondary lotteries.

On Tuesday, the Higher Regional Court of Koblenz in the state of Rhineland-Palatinate accommodated a ruling originally handed down on July 3, upholding a district court ruling barring an unspecified Gibraltar-licensed online lottery betting operator from offering services to German customers.

A district court in the state issued its original ruling preceding October in a case that was stimulated by a complaint from state lottery and sports betting operator Lotto Rhineland-Pfalz, which said unsanctioned competition from such secondary lotteries had reduced its 2017 sales by 7% approximately.

A Gibraltar-based defendant pleaded the lower court’s ruling and insisted that secondary lotteries’ offering was an alternative of a traditional lottery and as such was legitimate under the State Treaty on Gambling. The State Treaty, which is due to come into force from 1 January 2020, will suppress all online gambling, with exceptions for lotteries and sports betting.

However, the appeal was disregarded by the higher court. The court governed that secondary lotteries cannot be considered lottery and, therefore, must not be proposed online. The court added that the measures do not amount to a restriction on the freedom to provide goods and services under EU law.

Source: https://europeangaming.eu/portal/latest-news/2019/08/28/53028/german-court-upholds-ban-on-secondary-lotteries/

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Seema Waqar

Seema Waqar

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