PokerStars License Under Scrutiny in Germany Amid Regulatory Concerns

PokerStars, operating in Germany under Reel Germany, faces a challenge to its gambling license. The Gemeinsamen Glücksspielbehörde der Länder (GGL), Germany’s gambling authority, is reviewing a complaint alleging that the license should not have been granted due to regulatory breaches.

The core issue revolves around whether Reel Germany, linked to PokerStars through its parent company, met the stringent requirements for a German online gambling license. The website pokerstars.com allows German players to participate in online poker games. While the operator currently holds the necessary permit to offer these games in Germany, this status is now uncertain.

The complaint suggests that the connection between Reel Germany and TSG Interactive Gaming Europe, another subsidiary operating pokerstars.com, violates licensing guidelines. Allegedly, this company offered online gambling in Germany without a valid license until the summer of 2023.

Germany’s gambling market has undergone significant changes since July 1, 2021, when liberalization allowed operators to apply for licenses to legally offer online gambling. Before this date, online gambling, including poker, was generally prohibited. The GGL reviews applications and grants licenses based on specific criteria. Operating without a license remains illegal, entitling players to reclaim their losses from operators.

According to Dr. Gerrit W. Hartung, a lawyer specializing in consumer protection, complaints against license awards are rare but can trigger re-examination. He notes that a sports betting provider had its license revoked in the summer of 2023. Reel Germany/PokerStars is currently under review but, as of February 12, 2024, remains on the authority’s whitelist with a valid license.

If a valid license is absent, participants in illegal online gambling have the right to recover their losses. This right to reimbursement has been confirmed by numerous courts. A plaintiff is entitled to a refund because the contract with the defendant regarding participation in the online gambling offered by the defendant does not constitute a valid legal basis.

The outcome of the GGL’s review could have significant implications for PokerStars’ operations in Germany and the broader online gambling landscape.