Published: November 25, 2021, 09:47 pm.
Last update: November 25, 2021 at 10:05 am.
If Germany does not want to continue falling into the rabbit hole of unprotected consumer gambling, it is not going right. This is one of the assertions of the country’s sports betting organization, which denounces the new rules that would ban all sports betting advertisements.
Senator from the German state of Bremen, Ulrich Maurer, took a cue from other countries and called for a complete ban on advertising by sports betting operators in the country. The SPD member and Bremen senator for the state’s internal affairs believes that this would be the best way to combat problem gambling. He expressed his opinion during a meeting of interior ministers, but received criticism.
Prevent bad advertising for consumers
The German Sports Betting Association (DSWV) disagrees with the legislator’s position and thinks it will only make matters worse. The trade body “categorically” rejected the idea, asserting that one of the best ways to protect consumers was to give them information. If there is no advertising, there is no way for Germans to know how to separate licensed and regulated operators from unlicensed operators.
Since there are still many illegal service providers active in the German market, the ability to advertise to authorized service providers is of central importance. Otherwise, how should citizens differentiate between safe and unsafe offers? “ said DSWV President Matthias Dahams.
In addition to the consumer protection ads it could run, the DSWV accuses the senator of violating the law with his proposal. When Bremen and the other 15 German states agreed to the country’s latest gambling treaty, known locally as GlüNeuRStv, they specifically addressed marketing and advertising. The activities are approved and included in that latest agreement between states, the fourth interstate gambling treaty.
More questions than answers
The purpose of GlüNeuRStv was to achieve solidarity with the different gambling systems that exist throughout Germany. This, in the end, will make it easier for operators and users and be less confusing. However, the result has not yet been achieved.
Questions and controversy remain about who will be able to provide the services and what tax rates will apply. GlüNeuRStv has specified that operators are expected to abandon sports betting and online casino operations. However, various trade groups, including the European Gaming and Betting Association, have spoken out against the new standards.
New taxes, deposit limits, product restrictions, and ad bans now create a dilemma for operators who can tap into the lucrative online gaming market. Ultimately, this means that some companies will give up before the market takes off, as Betsson has already done. This could lead to the return of offshore and illegal sites to Germany.
Dahms added: “The state should not give the impression that it is measuring double standards and that it wants to give preference to its gambling offerings. After all, all German gaming license holders – state and private – have been extensively vetted by the authorities for their reliability and performance.
“This also applies in particular to their advertising concepts. Advertising of illegal providers is prohibited by law. Enforcement agencies should focus on enforcing this.”
Previously, under the terms of GlüNeuRStv, the ad was approved, but only between 9pm and 6am. Ads are not allowed to target minors and cannot imply the ability to solve financial problems.