Crackdown on Illegal Online Gambling: Are You at Risk?
A growing number of individuals in Germany are finding themselves under investigation, not for traditional crimes, but for participating in online gambling. Authorities are increasingly cracking down on illegal gambling activities, and playing with unlicensed providers can lead to criminal charges, frozen accounts, and the seizure of alleged winnings. But what exactly constitutes illegal gambling? Who is affected, and what rights do those involved have?
Defining Illegal Gambling
Illegal gambling occurs when gambling is offered or participated in without official authorization in Germany. This is governed by § 285 of the Criminal Code (StGB), which stipulates that both providers and participants in unauthorized gambling can face fines or imprisonment of up to six months. The key factor is whether the provider holds a valid German license. Since the enactment of the Interstate Treaty on Gambling in 2021 (GlüStV), only providers listed on the whitelist of the Joint Gambling Authority of the Länder are permitted to operate gambling services. Many well-known online casinos, poker platforms, and sports betting providers lack this license, making their operations illegal, even if they offer German language versions, advertising, and customer support.
The Importance of the Gambling Authority’s Whitelist
The whitelist is the primary tool for verifying legality. It lists all operators who have obtained a legally valid license to conduct gambling in Germany. Verification is done at the domain level. This means that even if a provider operates under a licensed brand, any gambling offered through an unregistered domain, such as a “.com” address, is considered illegal. Players who make payments to or gamble with such providers may be liable. Many users are unaware of the illegality because providers deliberately build trust through professional appearances, advertising, or payment processing via German banks.
Legal Risks of Participating in Illegal Gambling
In addition to the criminal liability of participation (§ 285 StGB), other legal consequences exist. A major concern is the confiscation of profits under §§ 73 ff. StGB. This involves seizing profits derived from illegal gambling. Prosecutors often demand the return of all payouts, not just the profit, but also payouts from deposits, based on a “gross principle.” This can result in players facing confiscation orders for significant amounts, even if they have overall losses.
What to Expect in an Investigation
Investigations into illegal gambling typically begin with a summons from the police or a letter from the prosecutor’s office. These are often based on bank data or financial transactions flagged during money laundering controls. If illegal gambling is suspected, accounts may be frozen or searched. In some cases, homes may be searched, especially if commercial participation or money laundering is suspected. However, the initiation of an investigation does not automatically lead to a conviction. In many cases, it is possible to achieve a dismissal.
Defense Strategies
An effective defense starts with silence. Accused individuals should not provide any information to the police or prosecutor’s office before seeking legal advice. After reviewing the case files, it is often possible to determine the basis of the investigation and whether intent can be proven. A common defense is the lack of awareness of the offer’s illegality. It is understandable that users may not recognize an unauthorized gambling operation, especially if the provider appears professional. Technical aspects, such as redirects or obscured domain structures, can also argue against intent. Other factors, such as low stakes or interrupted games, can also be used to achieve a dismissal under § 153a StPO. An experienced attorney can assist with the defense.
Confiscation of Winnings: Must Everything Be Repaid?
The confiscation of alleged winnings poses a significant financial threat to many accused individuals. Often, no distinction is made between profit and repayment. The prosecutor’s office considers all payouts as potential proceeds of the crime. In practice, this means that someone who deposited 10,000 euros, won 2,000 euros, and received 9,000 euros in payouts may be required to repay the full 9,000 euros, even if they have overall losses. Defending against this practice involves challenging the gross method. In many cases, it can be demonstrated that no unlawful economic benefit existed. Additionally, it can be argued that resorting to § 73 StGB is disproportionate if a dismissal under § 153a StPO occurs or if there is no classic profit.
Civil Claims Against Gambling Providers
Civil law also offers options. Individuals who have played with an unlicensed provider and lost money may be able to recover those losses. The Federal Court of Justice and numerous Higher Regional Courts have ruled that gambling contracts with unauthorized gambling providers are void under § 134 BGB. This means that players can reclaim their stakes, regardless of whether they were aware that the offer was illegal. The prerequisite is that the provider did not have a German license and was not on the whitelist at the time of participation.
Conclusion: Minimize Risks – Exercise Your Rights
Illegal gambling can have criminal, financial, and tax consequences, even for seemingly harmless participants. In particular, those working in sensitive fields may face problems due to such investigations.
Anyone affected should seek legal assistance without delay. Investigations can often be dismissed, confiscations avoided, and losses recovered through civil action.
Checklist: What to Do If Investigated for Illegal Gambling
- Do not make any statements to the police or prosecutor’s office without legal advice.
- Secure bank statements and deposit records.
- Check the provider on the GGL whitelist.
- Prepare a defense with an attorney and request access to case files.
- Examine the possibility of a refund and, if necessary, request coverage from legal expenses insurance (use an attorney for a free coverage request).
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