Lament against market regulation

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Maximilian Deininger July 11, 2023

A bookmaker has sued the restrictive regulation of the American sports betting market. According to the legal situation, the individual providers are obliged to submit their betting offer to the regional council (RP) Darmstadt before commissioning. The authority checks the corresponding offer and must grant the green light before the bookmaker can offer its portfolio of the topping community. But not every betting market has to be checked in advance. There is a list of approved sports, which in the complaining bookmaker believes that his own economy severely limits. For this reason, the operator submitted a lawsuit to the administrative court in Darmstadt.

Football is located on the list of approved sports and does not require a review by the regional council. ((©Chaos Soccer Gear/Unsplash)

Court agrees with plaintiffs

In addition to casinos, arcades and online segment, the new Gaming State Treaty (GlüstV) also includes the sports betting market. Accordingly, certain regulations, monitoring, control and guarantee the protection of the players must. At least that’s how it is written in theory. However, the practical implementation seems to have not really liked a bookmaker. He filed a lawsuit against the list of approved sports and against the general control regulation.

The final judgment of the Darmstadt Administrative Court is still pending, but the judges agree with the sports betting operator. The preliminary judgment is tolerated by the current betting offer of all licensed bookmakers in the Federal Republic. A review by the RP is therefore invalid for the time being. Even if they are sports and betting markets that are not on the list.

The court justified its decision The insufficient information situation. The judges have not yet received a sufficient insight into the administrative processes. In addition, many positions of the parties involved are missing.

Staff victory. The sliding closure of the Administrative Court in Darmstadt may not be a final judgment, but the sports betting market can still see the decision as a stage victory. The legislative now has to explain rationally and transparently why the current regulation of sports betting in USA makes sense.

Popular sports are missing

All in all Twelve sports are on the list of the RP And can be offered by the bookmakers in USA accordingly without approval by the authority. In addition to football, handball, tennis, automotive sports and ice hockey, the list also includes darts, skiing, biathlon, bobsleigh, curling, ice skating and racing tobogganing.

So it is the providers not allowed without consent, to perform other popular sports such as American football, basketball, golf or volleyball in your own betting offer.

on the corresponding side of the regional council It is said that license holders must apply for permission according to paragraph 21 of the glowing, provided that they want to go beyond the bets listed in the list. In addition, the RP requires a conclusive reason why the sport not listed should be approved.

Disadvantages for bookmakers. The current interpretation of the law harbors some disadvantages for the licensed sports betting providers in USA. On the one hand, they are so much impaired in their business processes that they are not competitive to foreign competitors. This in turn leads to a loss of sales that can threaten economic potency in the long term. On the other hand, there is a risk of not being able to fulfill the channeling order. Local players could see the offer of betting as inadequate and switch to the illegal betting market.

GlüstV: regulation of the sports betting market

The new state of gambling not only has paragraph 21 to regulate the sports betting market in USA. The legal framework comprises far more measures to do that Coordinating relationship between state and betting providers.

The most important measure concerns the American lucky license. Bookmaker who want to legally operate in USA, must have an official license. Otherwise they are considered illegal and are pursued by criminal law. Almost all major providers in this country tried a license in July 2021 before the GlüStV came into force.

Part of the American lucky license is among other things Gambling addiction prevention and fightingthat are to be specifically strengthened using various restrictive measures. There is about a monthly deposit limit of 1,000 $ , which applies to both analog betting agencies and digital bookmakers.

In addition, the popular ones are Live betting on the net since July 2021. This should prevent impulse bets and loss of control. Event bets, on the other hand, are still allowed, but may only be offered very limited. Before the GlüstV, it was possible, for example, to tap the next corner kick or the next yellow card. Legal restrictions also apply to bets at e-sports events.

Balancing act. The provision of an attractive betting offer and compliance with all legal requirements represents a balancing act for the licensed bookmakers. However, the provisional judgment of the administrative court in Darmstadt should initially give the providers some scope.