EU Court Case Challenges Germany’s Online Gambling Rules
A case before the European Court of Justice (ECJ), heard on April 9, 2025, has the potential to reshape Germany’s online gambling landscape. The core issue: Does Germany violate EU law by excluding online casinos without a German license from operating for German players? The ruling will test the limits of the EU’s freedom of services principle.
The Current State of Online Gambling in Germany
Since July 2021, the State Treaty on Gambling (GlüStV 2021) has been in effect, aiming to curb the black market, protect players, and strengthen legal offerings. Oversight is provided by the Joint Gambling Authority of the Länder (GGL) in Halle (Saale). However, the system faces criticism:
- Limited Licenses: Only 49 providers have licenses for virtual slot games as of April 2025.
- Strict Regulations: A €1,000 monthly deposit limit, restricted advertising times, and a central player exclusion database are in place.
- No Live Casino Games: Roulette, blackjack, and similar games are only allowed as animations; real dealers are prohibited.
- State Monopoly on Lotteries: Classic lotteries like Lotto remain under public control.
According to the German Sports Betting Association (DSWV), approximately 50% of revenues flow to platforms without a German license, often based in Malta or Curaçao. This means half the industry operates in a gray area.
EU Pressure: Why Brussels is Concerned
The European Commission has long viewed Germany’s approach with skepticism. In 2010, it initiated infringement proceedings, arguing that Germany’s licensing system hinders the freedom to provide services under Article 56 TFEU.
The EU criticizes the rules as disproportionately strict, making it difficult for reputable providers from other EU countries to access the German market.
The GGL estimates that licensed online casinos generated €3.2 billion in revenue in 2023. Estimates for the unregulated market are similar, but without taxes or consumer protection.
Case C‑440/23: What’s Really at Stake
The case stems from a German player who lost money at a casino licensed in Malta. Because the provider lacked a German permit, the player is demanding a refund. A Maltese court referred the case to the ECJ to determine whether Germany can prohibit the service.
Three key questions are being considered:
- Can Germany categorically exclude EU-licensed providers?
- Must a player accept losses if the offering was illegal in Germany?
- How much weight does national law carry compared to EU fundamental freedoms?
A final ruling is expected no earlier than autumn 2025. However, the Advocate General’s opinion, expected in July, should provide initial indications.
Protection vs. Freedom: The Legal Tension
Germany invokes Article 52 TFEU, which allows restrictions if they serve consumer protection or combat crime, such as preventing gambling addiction, protecting minors, and combating money laundering. Critics, however, argue this is a disguised state monopoly masquerading as player protection.
The EU counters that restrictions must be proportionate, transparent, and consistent. Stricter regulation requires proof that the measures are effective and not simply blocking foreign competition.
Potential Consequences of an ECJ Ruling
An ECJ ruling against Germany’s gambling regulation would have far-reaching consequences. If the court overturns the current course, providers licensed in other EU countries, such as Malta or the Netherlands, could legally challenge their exclusion from the German market and potentially even force approval. This would increase political pressure on the German states to fundamentally reform the existing licensing system.
This includes deposit limits, advertising restrictions, and the prohibition of certain game types. The existing monopoly of state lotteries would also be jeopardized.
For users, this could mean more choice and potentially better conditions, but also new risks, such as increased addiction or the need for stronger controls by the authorities.
A Look Across Borders: Models in Other EU Countries
A comparison with other EU member states shows that a liberalized gambling market can work, provided clear rules and consistent supervision are in place.
Malta, which has become a leading location for online gambling, is a prime example. The Malta Gaming Authority (MGA) regulates over 300 providers, emphasizing compliance, player protection, and transparency. Sweden has followed a similar path since 2019, opening the market, introducing national licenses, and focusing on responsible gaming.
The Netherlands launched a uniform licensing system in 2021, imposing harsh penalties for violations. These countries demonstrate that market openness does not contradict effective regulation.
Conclusion:
Whether the upcoming ECJ ruling opens the market or creates further legal uncertainties remains to be seen. What is clear is that Germany’s regulation is under scrutiny. For players, this means staying vigilant and carefully comparing providers. The legislator must now strike a balance between protecting against gambling addiction and upholding European freedoms. The proceedings in Luxembourg are therefore more than just a legal dispute. It is a signal of how Europe wants to shape the digital future of its internal market.
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