Gambling and Sports Betting Law in Germany

The legal framework for gambling and sports betting in Germany

Gambling and sports betting in Germany are regulated primarily by the states (Länder), which have agreed on a common framework in the State Treaty on Gambling 2021 (Glücksspielstaatsvertrag 2021, GlüStV 2021). The treaty entered into force on 1 July 2021 and for the first time created a nationwide licensing regime for online sports betting, virtual slot machines and online poker, while leaving online casino table games to the individual states. It also established a joint authority of the states, the Joint Gambling Authority (Gemeinsame Glücksspielbehörde der Länder, GGL), which is responsible for licensing nationwide online offers and for enforcement against illegal online gambling.

Each state implements the treaty through its own gambling act, which governs land-based offers such as arcades and betting shops.

The treaty's objectives, set out in § 1 GlüStV 2021, include preventing gambling addiction, channelling the natural urge to gamble into regulated offers, protecting minors and players, and preventing fraud, manipulation and money laundering. These objectives shape every requirement, from licensing conditions to advertising limits, and they guide the courts when they interpret the treaty. Offering public games of chance without a German licence is prohibited (§ 4 GlüStV 2021), and contracts with unlicensed operators can be void, which has led to large numbers of player claims for the return of losses.

Licensing of sports betting, virtual slots and online poker

Operators of sports betting, virtual slot machines and online poker need a licence that is valid for all states. The GlüStV 2021 sets special licensing requirements for these products in § 4a: reliability of the operator and its owners, transparency of ownership structures, financial capacity, a security deposit, compliance with player protection and data protection rules, and IT security. The applicant must have a seat in the EU or the European Economic Area, and licences contain detailed conditions on the games offered, technical systems and reporting. The GGL publishes a whitelist of licensed operators that players, payment providers and advertisers can consult.

Sports betting is subject to product rules in § 21 GlüStV 2021. Bets during a sporting event are restricted: in-play bets are generally limited to bets on the final result and on the next goal, set or similar component of the final result in sports where such events occur only rarely.

Bets on events that are particularly prone to manipulation, such as yellow cards, are not permitted, and the authority approves the catalogue of permitted bets. Operators must also separate sports betting from other games on their websites. For virtual slot machines, § 22a GlüStV 2021 provides that the stake may not exceed one euro per game and sets further limits on game speed and features designed to protect players.

Player protection: limits, exclusions and monitoring

Player protection is the most operationally demanding part of German gambling and sports betting regulation. Under § 6c GlüStV 2021, players must set an individual monthly deposit limit at registration that applies across all licensed operators; the cross-operator limit may in principle not exceed EUR 1,000 per month, with limited room for higher limits under conditions set in the licence. A central limit file checks deposits across operators, and a further file prevents parallel play with several online operators at the same time. Operators must use automated systems to detect problematic gambling behaviour and react to it.

The nationwide self-exclusion system OASIS, governed by § 8 GlüStV 2021, covers online and land-based offers. Players can exclude themselves, and operators and authorities can request exclusions in certain cases. Licensed operators must check every player against the exclusion file before allowing them to play. In addition, operators must verify identity and age, offer reality checks and information on responsible gaming, and implement a social concept describing how they prevent and address addiction risks. Breaches of these rules can lead to fines, licence conditions and, in serious cases, revocation of the licence.

Advertising for gambling and sports betting

Advertising is permitted for licensed offers but subject to detailed rules in § 5 GlüStV 2021 and the licence conditions. Advertising may not target minors or other vulnerable groups, may not be misleading, must not present gambling as a solution to financial problems and must contain information on addiction risks and help services. Television and internet advertising for virtual slot machines, online poker and online casino games is prohibited on broadcasting and the internet between 6 am and 9 pm (§ 5(3) GlüStV 2021). Immediately before and during the live broadcast of a sporting event, advertising for bets on that event is not permitted on the broadcasting channel, and sports betting advertising featuring active athletes and officials is prohibited.

Affiliates and influencers are also caught: remuneration of affiliates that depends on turnover, deposits or stakes is prohibited. Advertising for unlicensed gambling is prohibited, and the GGL acts against websites and social media accounts promoting illegal offers. Sponsorship agreements with clubs, leagues and media partners should therefore contain warranties that the operator is licensed, compliance obligations for content and termination rights if a licence is revoked or advertising is prohibited.

Land-based gambling and sports betting outlets

Land-based gambling and sports betting remain largely a matter for state law. Betting shops need a permit from the competent state authority, and the states set rules on minimum distances between betting shops and from schools or youth facilities, on the number of outlets and on the separation of betting from other games. Arcades with gaming machines are regulated by the state gambling acts and by federal trade law, including the Gaming Ordinance (Spielverordnung), which governs the technical features of commercial gaming machines. Casinos and lotteries are traditionally reserved to state-owned or state-licensed operators, and the lottery monopoly under the GlüStV 2021 remains in place.

Operators active both online and offline must therefore manage two regulatory layers: nationwide licences from the GGL for online offers and state permits for each physical outlet. The OASIS exclusion system applies to both, so a player excluded online is also excluded in betting shops and arcades. For investors in retail betting networks, due diligence should cover the status of each permit and any pending disputes with local authorities, because permits are tied to individual premises and conditions differ from state to state.

Enforcement against illegal offers: payment and access blocking

The GGL has extensive enforcement powers under § 9 GlüStV 2021. It can prohibit illegal offers and advertising and, after prior notification of the illegal offer, prohibit those involved in payment transactions, in particular credit and financial services institutions, from participating in payments to and from unlicensed gambling, without first having to proceed against the operator. It can also take measures to block illegal offers against service providers responsible under the rules on intermediary liability, in particular access providers and registrars, where action against the operator has failed or has no prospect of success.

Payment blocking has become an important tool in German gambling and sports betting enforcement. Banks and payment service providers receiving prohibition orders must implement them and should have processes to identify transactions with listed merchants. Access blocking against internet service providers has been more contested in the courts, and the GGL's practice has adjusted in response. For payment providers, the risk of facilitating payments to unlicensed operators goes beyond regulatory orders: player claims for repayment have in some cases also been directed against payment intermediaries.

Player claims and litigation

German civil courts have seen a wave of claims by players seeking repayment of losses incurred with operators that offered online casino games or sports betting without a German licence. The legal basis is typically the nullity of contracts that infringe a statutory prohibition under § 134 of the Civil Code and the resulting claims for unjust enrichment. Many Higher Regional Courts have found in favour of players, while operators argue that EU freedom to provide services, the toleration of certain offers during the transition to the new regime and other defences preclude claims.

Questions relating to sports betting operators whose licence applications were pending under the earlier regime have reached the Federal Court of Justice and the Court of Justice of the EU.

For operators and investors, this litigation is a material financial risk that should be assessed in due diligence, accounted for and managed actively. Claims are often bundled by litigation funders and pursued in large numbers, and enforcement may target assets in other EU Member States under the Brussels Ia Regulation.

Transactions, ownership changes and anti-money laundering

Changes in the ownership of a licensed operator require prior notification to, and in some cases approval by, the GGL, because the reliability and transparency of owners are licensing conditions. Mergers and acquisitions in the gambling and sports betting sector therefore need a regulatory workstream alongside merger control and, where relevant, foreign investment screening. Due diligence should cover licence conditions, enforcement history, player claims, the quality of player protection systems and tax compliance under the Racing Betting and Lottery Act.

Gambling operators are obliged entities under the Anti-Money Laundering Act (GwG). They must carry out customer due diligence, monitor transactions and report suspicious activity to the Financial Intelligence Unit. Online operators must ensure that player accounts are funded through accounts in the player's name with regulated payment institutions, which supports both anti-money laundering and player protection objectives.

How TRW & Co helps

We advise operators, payment service providers, media companies, sports clubs and investors on gambling and sports betting law in Germany. We support licence applications and changes of control before the GGL, review advertising and sponsorship arrangements, design compliance systems for player protection and anti-money laundering, and represent clients in administrative proceedings and in civil litigation, including player claims. Our work draws on our commercial litigation, payments and technology and media practices; see also our notes on AML obligations and sports law. Please contact us to discuss your project. This briefing is general information, not legal advice.