German regulator designates Daily Fantasy Sports as illegal

(PRESS RELEASE) -- The Gemeinsamen Glücksspielbehörde der Länder (GGL) expressly points out once again that according to the State Treaty on Gaming 2021, public games of chance may only be organized or brokered with the permission of the responsible authority. It should be noted here that a game of chance exists if a fee is demanded in the context of a game for acquiring a chance of winning and the decision about winning depends entirely or predominantly on chance. A public game of chance always exists when a larger, non-closed group of people is able to participate.

Within the scope of its responsibility, the joint gambling authority of the federal states checked certain forms of the "Daily Fantasy Sport" game principle at the end of April and classified it as illegal gambling, as a result of which a well-known provider of this game principle discontinued its offer after the hearing by the GGL.

“We find that our decisions are accepted by the providers and implemented promptly,” said Board member Ronald Benter. “This protects consumers from illegal offers and the risk of betting and gambling addiction. If you want to play safely and legally, you can find out about all permitted providers on the official whitelist on our homepage.”

In the "Daily Fantasy Sport" game principle, which originated in the U.S., each player puts together a virtual team of real players in a sports league, who are evaluated based on their actual performance based on a catalog of points. On this basis, a point ranking of the competing game participants can then be created, which is used to decide whether to win or lose.

With the offer classified by the GGL as illegal gambling, it was possible to set up a team for individual game days of different leagues or competitions or for selected games of individual game days or individual competitions and to take part for a fee. A hearing was therefore held by the GGL, whereupon the illegal gambling offer was discontinued.

“Fighting illegal gambling is an important consumer protection issue and can only be effective if all other authorities involved, such as law enforcement agencies, pull together,” said CEO Benjamin Schwanke.

On the official whitelist underhttps://www.gluecksspiel-behoerde.de/de/erlaubnisfaehigesgluecksspiel/whitelist lists the organizers and brokers of games of chance who have a license under the GlüStV 2021. The whitelist is updated as required, but at least once a month.