PokerStars’ German License Under Scrutiny Amidst Controversy
Munich, February 21, 2024. PokerStars, a popular online platform, allows German players to participate in virtual poker games. The company possesses the necessary license to offer online poker in Germany. However, this situation might change due to a complaint filed with the Gemeinsame Glücksspielbehörde der Länder (GGL), the joint gaming authority of the German states. The complaint alleges that Reel Germany, the license holder, should not have been granted the license due to regulatory violations.
The liberalization of the German gambling market, effective July 1, 2021, forms the backdrop of this dispute. Before this date, online gambling, including online poker, was generally prohibited in Germany. Since then, providers can apply for a license to offer their services. The GGL reviews these applications and grants licenses if specific requirements are met. “Without a license, online gambling remains prohibited, allowing players to reclaim their losses from the operators,” explains attorney István Cocron.
PokerStars currently holds a valid license. However, a legal firm is challenging the GGL’s decision to grant Reel Germany the license. According to a report in the F.A.Z. on February 21, 2024, Reel Germany, through its parent company Rational Resources, has connections to the website pokerstars.com. TSG Interactive Gaming Europe, another subsidiary, operates the website. This connection allegedly violates the GGL’s licensing guidelines. Furthermore, the report claims that this company operated online gambling services in Germany without a permit until the summer of 2023.
Complaints against license awards are rare but do occur, according to the GGL, and can trigger a re-evaluation. For example, the gaming authority revoked the license of sports betting provider Tipster in the summer of 2023, according to the F.A.Z. The GGL has stated that Reel Germany will also be re-examined. Currently, the company holds a valid license according to the GGL’s whitelist (as of February 12, 2024).
If a valid license is absent, participants in prohibited online gambling can reclaim their losses. “Numerous courts have already confirmed this right to reimbursement,” states attorney Cocron.
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