United States
United Kingdom
Summary
- Lottoland claims that it is being targeted by GGL primarily to protect the state lottery monopoly
- The company argues that GGL’s blocking request violates EU law
- GGL has accused Lottoland of offering an illegal gambling service to German players
Lottoland is accusing Germany’s gambling authority Glücksspielaufsicht der Länder (GGL) of protecting the lottery monopoly in the country by making up ‘facts’.
This comes after the regulator asked Germany’s three main internet service providers (ISPs) to block access to two sites operated by the Gibraltar-based company.
Lottoland Defends Lottery Betting Operations
Lottoland said the blocking request was in breach of EU law as well as EUKOM and ECJ rules. In a recent statement, the company argued that gambling regulators are generally prohibited from issuing blocking orders regarding operators that are within the protected area of the free movement of services in Europe.
In July 2022, GGL targeted Lottoland in its first enforcement campaign to block the services of illegal lottery betting operators. The agency said the company is not authorized to offer lottery betting to German consumers as it is deemed illegal under the new iGaming rules namely the Fourth Interstate Gambling Treaty (GlüNeuRStv).
Lottery betting is a gambling practice whereby customers bet on the outcome of a lottery draw rather than participating in the actual draw.
Lottoland is standing by its position that it is operating within the law, citing its license applications in Germany over the past five years. The firm said it was for that reason that Lottoland Deutschland GmbH was established in 2020. The company also asserted that it has been paying its fair share of taxes to the German government since it began offering services to the German market.
Lottoland has dismissed GGL’s enforcement action as merely an attempt to get rid of competitors in the lottery sector, maintain the status quo, and ultimately protect the monopoly of the state lottery. The company also criticized the GlüNeuRStv, saying that the legislation liberalized both the betting and gaming markets, but not the lottery.
The company has maintained that its operations are consistent with the EU freedom of services policy. It also emphasized that its services have never been blocked before in Germany and that it has not encountered any blocking order before, just a request.
Lottoland to Launch Legal Action Against GGL
Lottoland claims that the German gambling regulator has reservations over its authority to issue blocking orders, with its CEO Benjamin Schwanke previously stating that their actions could be subject to judicial review. Lottoland has vowed to challenge GGL’s actions through state liability lawsuits which could involve millions of dollars!
