German Watchdog Imposes First Fine on Gambling Firm

A gambling firm in Germany has received the country’s first-ever fine for breaching advertising guidelines.

The company, which hasn’t been named by the German regulator Gemeinsamen Glücksspielbehörde der Länder (GGL), was issued with a “severe fine” of five digits at the beginning of the month.

It’s the first fine since the Fourth State Treaty on Gambling was introduced in July 2021 that a gambling licence holder has been given a financial penalty for failing to comply with advertising regulations. Back in July last year GGL was created to oversee illegal gambling and advertising via IP and payment blocking. In January this year it was given complete control of gambling regulation in the country. In the past gambling enforcement was carried out by individual states.

This new breach of the State Treaty on Gambling was committed after the licence holder deliberately advertised their services on affiliate websites which also permitted unregulated gambling adverts.

A spokesman for the GGL said: “A five-digit administrative offense notice was issued to a provider of games of chance on the Internet who, after receiving the state gambling license from the GGL, deliberately advertised his offer on websites that also advertised illegal offers.”

The GGL’s CEO, Ronald Benter, warned that the enforcer has no hesitation in revoking a license from a betting services provider who continued to flout the regulations with repeated violations.

He added: “The withdrawal of the permit in the event of repeated violations of the provisions of the State Treaty on Gambling is a measure that we do not shy away from.”

The desire to advertise on illegal sites made no sense anyway, Benter said, since it only served to damage the license holder’s reputation within the sector.

Germany isn’t the only European country to come down hard on gambling license holders who breach rules. The Netherlands Gaming Authority de Kansspelautoriteit (KSA) has upped it is enforcement activities this year, giving on the spot fines to both gambling license holders and illegal gambling providers.

Only two ago, for instance, Bet365 received a €400,000 from KSA for breaching the country’s advertising guidelines. The operator, Hillside New Media Malta was found guilty of publishing adverts which were deliberately targeted at young adults (aged 18 to 24). The regulator was alerted after an 18-year-old received several emails from Bet365 encouraging them to join and offering various bonuses. Following an investigation, it was discovered other youngsters had received similar communication.

Kambi signs deal to relaunch Mybet sportsbook in Germany

Kambi signs deal to relaunch Mybet sportsbook in Germany Kambi has today signed a deal to power the relaunch of Mybet, one of Germany’s most recognisable sports betting brands now under new ownership.

Due to the recent insolvency of its previous owner, MyBet Holding SE, Mybet was withdrawn from the market in the fall of 2018 following 15 years of operation, however, the mybet brand and digital assets have since been purchased by a new investment group.

Under the terms of today’s multi-year agreement, Kambi will provide Rhinoceros Operations Ltd, the new operator of mybet, with its complete Sportsbook and full range of managed services, enabling the company to relaunch the brand into the growing German online market.

The Mybet relaunch is scheduled to take place during H1 2019, while the contract also provides a provision for Rhinoceros Operations to launch a Kambi Sportsbook with other brands under its ownership.

Kristian Nylén, Kambi Chief Executive Officer, said: “The story of Mybet illustrates why operators cannot afford to rely purely on the strength of their brand and history in a market. Online sports bettors are increasingly promiscuous so operators must ensure they have sufficient scale in their product investments to provide exciting sports betting experiences at all times to remain competitive. Partnering with a high-quality supplier such as Kambi solves that challenge.

“We are excited by the potential of Mybet. The brand remains strong and, with the quality the Kambi Sportsbook offers, we believe Mybet can once again become a leading player in the German market and elsewhere.”

Tobias Carlsson, CEO of the Rhinoceros Group, said: “Our agreement with Kambi is one of the cornerstones on which we will build the future of a great brand. Mybet was one of the pioneers in the German sports betting field, and together with Kambi and our other partners we will do everything in our power to revive that legacy and bring players the experience they desire and deserve.”

German banks involved in illegal online casino payments

On Wednesday, German newspape Süddeutsche Zeitungand public broadcaster NDR fingered DZ Bank, Postbank, Hypo-Vereinsbank and Wirecard for processing payments from internationally licensed online casino operators, in apparent contravention of Germany’s current gambling laws.

Evidence of the four financial institution’s connections with the online gambling sites came via the release of the so-called Paradise Papers, the latest document dump by the International Consortium of Investigative Journalists (ICIJ) in its ongoing efforts to shine a light on the financial dealings of the world’s 1%.

So far, the banks have issued statements denying that their activities were in violation of current German gambling laws, which prohibit online gambling outside of sports betting.

But the Interior Ministry of the state of Lower Saxony begs to differ, suggesting the banks could be found guilty of facilitating illegal gambling operations, as well as potential money laundering charges, although no one’s so far suggested any such charges are forthcoming.

Among the online operators’ namechecked in discussion of the banks’ activities are Bwin, Tipico, Royal Panda, Casino Club, amid others. Some of these, like Bwin and Tipico, hold online gambling licenses issued by the German state of Schleswig-Holstein, which enacted its own, more liberal licensing regime rather than sign on to the sports-only federal gambling treaty approved by Germany’s other 15 states in 2012.

Germany has targeted international online casino operators in the past by going after these sites’ local customers, but both German and European Union courts have questioned the government’s ability to sanction international sites due to lingering questions over the legality of Germany’s federal betting rules.

Schleswig-Holstein and three other states recently announced that they intended to follow their own path toward online gambling regulation, effectively dooming the revised federal treaty, which was to take effect January 1, 2018, provided it could secure the unanimous consent of all 16 German länder.

Last month, a Federal Administrative Court upheld the constitutionality of Germany’s ban on online casino and poker products, but the German Sports Betting Association (DSWV) was quick to issue a statement saying the court hadn’t given thumbs-up to the government’s original plan to issue 20 sports betting licenses, which only left the country in its current state of limbo.

DSWV appeal to see change in German betting regulation

The German Betting Association (DSWV) has made an appeal to the government regarding the terms of the latest Gambling Treaty Amendment. This forms a part of the lengthy and ongoing battle to reform and better regulate sports betting in Germany.

The amendment to the State Treaty provides the introduction of a quality approval system for sports betting providers. This followed the 2012 move which introduced a licensing procedure for up to 20 sports betting companies; this was immediately criticised by a number of people in and around the industry and it ultimately failed.

DSWV president Mathias Dahms commented: “The minimally invasive revision of the treaty is a small step in the right direction, but it falls short. The restrictive regulations for sports betting operators derive from an outdated monopoly system and have not been capable of creating an attractive and legal range of games.

“If a number of consumers continue to make use of black market products, then neither addiction nor youth and consumer protection can be ensured.”
In short, Dahms is stating that the regulation needs to reflect the social realities that take place in sports betting, and that limiting it to a reduced amount of operators is dangerous. It’s far safer for everyone involved to properly regulate it and not to limit the market in such a drastic fashion, as this leaves a space for and encourages shady and illegal operators.

Dahms continued: “We are only at the beginning of a much-needed reform process. The present regulations are out of date in many areas. The test orders decided by the Prime Minister concerning the development of the regulation certainly help, but require the involvement of the companies concerned. ”

There needs to be an open dialogue going forward, and the DSWV wishes to play a central role in the evaluation process. Dahms noted: “The experience of our members in other European countries shows that successful regulation exists only where providers and authorities cooperate confidently and work together for the environment. We are available at any time for this type of co-operation.”

EU's top court slams German licensing regime

The European Union’s top court has issued an opinion that says Germany can’t prosecute unauthorized sports betting operators because the country’s gambling regulations run contrary to European law.

On Thursday, the Court of Justice for the European Union (CJEU) released an opinion by Advocate General Maciej Szpunar in the case of Sebat Ince, a Turkish national residing in Germany.

Ince ran a ‘Sportsbar’ which provided technology that allowed German bettors to connect with a Malta-licensed online betting operator. German authorities wanted to prosecute Ince for taking bets without a license but a Bavarian court asked the CJEU to rule whether the prosecution violated EU prohibitions on the restriction of trade.

Germany passed its federal interstate treaty on sports betting in 2012 and issued 20 online betting licenses in 2014 following a widely criticized application process. However, court challenges by rejected applicants have prevented the licenses from taking effect and the European Commission is currently considering whether to launch infringement proceedings against Germany due to its suspicion that the regime is incompatible with EU law.

Szpunar’s opinion can be read here, but in a nutshell, the ruling says Germany can’t prosecute private betting operators operating without a license because the chaotic and inscrutable tender process that capped the number of available licenses at 20 had failed to live up to EU standards of transparency.

A full ruling by the CJEU on Germany’s licensing regime is expected later this year. The German Sports Betting Association (DSWV) issued a statement saying it hoped Szpunar’s opinion would be enough to convince the German government to convene meetings with stakeholders to create a “fair and legally compliant” gambling regime.

Earlier this week, a court in the German state of Hesse rejected the appeal of an earlier ruling that prevented the issuance of those 20 sports betting licenses. The Hessian Administrative Court upheld a lower court’s ruling that the ‘Gambling College’ that was established to vet the license applicants represented neither the federal nor state governments, creating, in effect, a third unaccountable level of government that the court called a “breach of the principle of democracy.” Ouch.

The Hessian court also determined that this Gambling College had disproportionately favored German companies over equally qualified firms from other EU member states when it came to deciding who made up the lucky 20 license recipients. The Court concluded that Germany would be far better off forgetting the whole sordid episode and starting the process over from scratch. Amen.

European Court upholds German online gambling regulations

The European Court of Justice ruled on today that Germany’s strict regulation of online gambling was justified even if the regional state of Schleswig-Holstein had eased the rules for online gambling.

Digibet had taken the case to the European court as they had been blocked from offering online gambling in Germany and believed it to be unconstitutional as one stae allows online gambling so why not all of Germany.

“The 15 remaining states were not required to change their rules just because a single state had pursued a more liberal policy for a limited time,” the European court said in a statement.

Digibet asks the EC to clarify German igaming laws

German sports betting market focused operator Digibet has asked the European Court of Justice to bring clarity to the German sports betting licensing procedure. The operator has brought fourth a case concerning German licensing procedure, stating it to be cumbersome and lacking in transparency, which has in turn affected its business practices.

Digibet are concern by the slow progress, of issuing licenses for the region and the inability of the government to set corporate guidelines and best practice for the governance of the sector.

German ministers have indicated that the first batch of licenses will be set for Q4 2014, it is unknown which operators will be granted permission to market igaming services in the region. Ministers have also not given specific details with regards to implementations of new laws which may affect the sector.

Digibet hope that the European Court of Justice may add pressure to the German policy makers on the issuing of igaming policy. The Q4 target has been thought of as being optimistic given the circumstances.

German focused operators are hoping for transparency in 2014, given the sporting significance of 2014, operators in the region will be hoping for less stringent policies that have affected igaming markets in other legislated European Jurisdictions

New German sports bet license deadline

Groundhog Day has come early in Germany, where the 41 hopefuls vying for the country’s 20 federal sports betting licenses have received fresh instructions on how to fill out the application forms. Germany began the process of selecting its lucky 20 sports betting licensees shortly after it passed its interstate gambling treaty in mid-2012, but last November the Interior Ministry announced that not one of the applicants had successfully met the qualifications for licensing.

The authorities in Hesse have now issued individual letters to each applicant, pointing out the instances of undotted I’s and uncrossed T’s and requesting further information necessary for the regulators to make their decision. Applicants have been given until March 14 to resubmit their forms. At least one unidentified operator groused to eGaming Review that they hoped this latest go-round would be “more professional” than previous efforts.

Regardless of how much of that fabled Teutonic efficiency is on display this time around, the Ministry will require a few months to process the new applications before making any announcement, which will be followed by a required 15-day standstill period. Operators who fail to make the cut may further gum up the works via legal actions protesting their rejection, making it a virtual lock that no operator will be accepting legal German sports bets until the second half of the year at the earliest.

Bwin asks for clarity & fairness in German market

Bwin.party said Germany should allow online gambling companies to compete on a level playing field with locally based operators.

The company, the world’s largest listed online gaming group, also said trading since the end of September had been in line with management expectations.

“Gross win margins in sports betting returned to more normalised levels in November after a very strong run of results in October,” the company said.

Bwin.party was one of 12 operators given six-year licences in December to operate online casino and poker games in the northern German state of Schleswig-Holstein.

It pressed its case for more liberal betting rules across Germany, its largest market.

“There is now a question over how the existing regime in Schleswig-Holstein can co-exist with the alternative system proposed by the other 15 German states that seeks to allow sports betting only and with significant additional restrictions for the online offer, restrictions that do not apply to land-based operators,” the company said.

The company is also concerned that Schleswig-Holstein is considering reversing course to fall back into line with the rest of Germany.

“Whilst we welcome the move to regulate the online gaming market in Germany, this must be in a consistent and coherent manner in-line with EU law,” the company said.

Schleswig Holstein issues 12 online licenses

A total of twelve online operators have all secured online gambling license approval in the German state of Schleswig Holstein. The twelve major gambling operators include, bwin.party, Bet365 and PokerStars, each receiving six-year licences to offer casino and games to the residents of Schleswig Holstein.

A less than enthusiastic Interior Minister, Andreas Breitner, explained that whilst the issue was politically troubling for him, the state had an obligation to respect the existing law, which required that licensing be granted.

However, he again stressed that the intention of the current government is to repeal the existing Gambling Act & re-join the German Treaty.

How such a repeal will sit with the new licensees in legal terms, & for that matter the European Commission, remains to be seen.

Bayern Munich have been declared Bundesliga champions by one betting company

Bayern Munich have been declared Bundesliga champions by one betting company before the halfway stage of the season.

Bayern take an 11-point advantage into the last round of matches in 2012 and anybody who had placed a bet on them winning the league with myBet can enjoy an early Christmas present as the company is already paying out.

"Bayern's dominance and the quality and strength in depth they have in their squad speaks for itself," said myBet's general manager Edward Mifsud on sport.de.

"No other Bundesliga club can compete with them this season."

Bayern are already 14 points clear of defending champions Borussia Dortmund - who managed to overturn an eight-point deficit on the Bavarians last season, but are looking unlikely to bridge an even greater gap this time around.

"It's not only the advantage on second place, but it is also their huge goal difference of plus 37 which earns them an extra point," added Mifsud.

Dortmund's 81-point Bundesliga record from last season is also under threat with Bayern, who have lost only once all season, already on 41 points with one game to go before the halfway stage of the season.

German States Chart Online Gambling Future

The German state of Schleswig Holstein (SH) had enacted a liberal online gambling legislation that had been approved by the European Union (EU) and accepted by the industry. Then the elections resulted in a change in political leadership. Certain prominent members of the new regime stated their intent to repeal the progressive licensing and regulation policy and join the other states in signing the restrictive State Treaty. The good news is that the Ministry of the Interior has confirmed that until the law is amended or repealed, the current legislation applies and the required processes will not be put on hold but will be executed. Fears have also been voiced that any repeal of the legislation now could result in expensive legal actions brought by the seven major online gambling companies that have made investments based on licenses already issued.

A report from the Public Gaming Research Institute stated that SH has continued to issue licenses for sports betting with a validity of six years. Earlier this month the Ministry of the Interior had issued licenses to bet-at-home, bwin, Bet365 and Sportingbet. According to the Ministry, twenty four online gaming operators have applied for a sports betting license. These applications are under consideration and are being evaluated in stages. Six new sports betting licenses are likely to be issued within the next few weeks. Another four to six licenses are apparently also in the pipeline and are likely to be issued later. Seventeen operators have applied for an online casino gaming license.

What the future ultimately holds for the German state of SH one cannot say. But, the further the authorities tread on the liberal path, the more difficult it will be to retract the steps. However the rest of the German states are clearly going the other way. There had been an ongoing debate on a new Interstate Treaty on gambling to replace the one that expired last year. The states have been trying to carry on as before by paying mere lip service to the growing EU concerns. A few proposals actually sent to the EU have not found acceptability.

It has now been reported that thirteen states have come to an agreement. This is the minimum threshold required to give effect to the new treaty. This situation was reached last week when Thuringia and Mecklenburg-Vorpommern climbed on board. It seems the four-year new treaty will come into play from July 1 2012. The new treaty is only slightly less restrictive than the earlier one. It allows for 20 private sports betting licenses priced at about €50 million each, and levies a turnover tax of 5%. Online casino gambling remains out of bounds for private operators.

Bwin.Party awarded Schleswig-Holstein license

Bwin.party has announce it has been awarded a licence to operate online sports betting by the Ministry of Interior in Schleswig-Holstein.

The license is effective immediately and is valid for six years. Revenues generated under the license will be taxed at the rate of 20% of gross gaming revenue. In 2011, the group generated total pro forma gross sports betting revenue of approximately 96.1m from Germany. Co-chief executive Rorbert Teufelberger said: “Schleswig-Holstein’s regulatory regime represents an important step in building a vibrant and competitive German online gaming market. “This EU-compliant regime is a fundamentally important step to protect consumers and keep out black market operators in Germany.” bwin.party has submitted separate applications to offer online poker and casino games and anticipates receiving the requisite licenses from Schleswig-Holstein in due course.

Bwin.party sales inch up, bullish on Germany license

Bwin.party digital, the world's largest listed online gaming company, said first-quarter revenue edged up and that it expects to be offered a licence to offer online gambling in Germany soon.

The company, which was formed by the merger of Austria's Bwin and PartyGaming last year, on Wednesday said revenue rose 1 percent to 215.9 million euros ($275.8 million) in the three months to the end of March as growth in casino and gaming offset weakness at its poker and bingo businesses. It added that April trade was in line with last year.

The Gibraltar-based firm said it expects to be offered a licence to offer online gambling in Germany from the state of Schleswig Holstein.

The northern state, whose centre-right coalition government voted in favour of relaxing its gambling laws in September, said last week that it had awarded three licences valid to 2018 - one to Britain's Betfair for sports betting, one to Germany's Jaxx AG and one to the state lottery.

"Whilst the political situation remains unclear, we expect more licences to be issued by Schleswig-Holstein shortly and that we will also receive a licence," Bwin.party said.

In Spain, where the licensing process has been delayed following the change of government, operators have now been told to expect licences to be issued from the beginning of June 2012, it said.

Bwin.party last week prepared the ground for a possible relaxation of U.S. internet betting laws by signing a deal with a Native American tribe which operates gambling in California.

The company said the amounts wagered in sports betting rose 11 percent in the quarter to 1.08 billion euros but that margins were down on last year which was particularly strong.

"With the imminent launch of our download casino product on the bwin platform, the Euro 2012 football tournament starting next month and the integration of our poker liquidity in the second half, we remain confident about the group's full year prospects," the company said in a statement.

Gaming software group Playtech On Wednesday said the strong performance experienced in the first quarter had continued in the six weeks since the end of March.

Sports betting provider mybet heads into Bundesliga 1 with SpVgg Greuther Fürth

The sports betting provider mybet will be sponsoring the football team Greuther Fürth from the 2012/2013 season. Fürth had already sealed promotion to the top tier of the Bundesliga with four matches to go.

Mathias Dahms, Management Board spokesman of mybet parent JAXX SE, remarked: 'We congratulate Trainer Mike Büskens and his team on what must be the most notable achievement in the club's history. And we look forward to plenty of exciting top-flight matches next season for the team with the cloverleaf emblem.'

The sponsorship package for SpVgg includes TV-relevant advertising areas on the stadium's perimeter bands as well as extensive promotional opportunities. Mathias Dahms added: 'In mybet, we have an excellent brand that we aim to continue bolstering through a measured approach to sponsorship and well-paced branding measures. Our partnership with the cloverleaf gives us the opportunity of a presence in the Bundesliga through an especially likeable club. With its attractive football and a young, motivated group of players, the team is bound to make its mark on the first division, too.'

mybet has been involved in the sports betting market since 2003 and is today one of Europe's leading providers, with over half a million Internet customers and more than 500 betting shops. In the increasingly liberalised German market, which is now being opened up to private sports betting providers, mybet is aiming to be comprehensively involved in sport.

Alongside its new association with SpVgg Greuther Fürth, mybet is already premium partner of Fortuna Düsseldorf, sponsor of the Germany national handball team and supporter of 'Republik Fussball', an initiative of FC St Pauli for amateur and recreational players. Through its licensing in Germany, mybet will moreover be making a major contribution to mass sport through the tax revenues and licence fees it generates for the state.

Bet-at-home.com capitalises on unique Kentaro offering

Global sports marketing agency Kentaro has struck a deal with online bookmaker bet-at-home.com for LED advertising at all five of the German national soccer team’s 2014 Fifa World Cup qualifying matches.

As the marketing partner of all of Germany’s qualifying group opponents – Sweden, Republic of Ireland, Austria, Kazakhstan and the Faroe Islands – Kentaro is able to offer the unique opportunity to sponsors looking to reach millions of German viewers through the country’s state-owned free-to-air broadcasters such as ARD and ZDF. Bet-at-home.com is the first company to snap up the sponsorship opportunity.

“It is obviously very pleasing for Kentaro as the marketing partner of all five of Germany’s group opponents to be able to offer this unique package to the market,” said Kentaro’s chief executive Philipp Grothe.

“It is a hugely persuasive opportunity to be able to secure such a significant advertising presence at the Germany away games, which are traditionally the most important qualifiers. We are delighted to welcome bet-at-home.com as our first partner.”

“To be able to sponsor the away games of the Germany national team is a very important opportunity for an international company such as bet-at-home.com,” said the company’s chairman Jochen Dickinger.

“With all of our sponsorship decisions, we place a great emphasis on ensuring that the overall package suits us. Our motto is quality, not quantity, and this commitment confirms that once again.”

The first of Germany’s five away games takes place on 11th September 2012 in Austria.

Schleswig-Holstein issues online sports betting licences

The German state of Schleswig-Holstein has issued its first three online sports betting licences to online betting exchange Betfair, JAXX subsidiary myBet, and state lottery operator NordwestLotto, with licences for casino and poker expected to be issued later this year in summer.

“Stringent requirements ensure that only serious and commercially viable enterprises are allowed in the market,” said Klaus Schlie, Schleswig-Holstein’s Interior Minister.

Schlie said that operators wishing for a licence will have to produce extensive documentation to prove economic efficiency and transparency, as well as procedures to secure payment processing, combat money laundering and prevent fraud.

The Minister added that a collaboration between gambling providers and sporting associations was “desirable”.

“The sports federations have to do everything in their power to ensure that sporting events take place without manipulation,” said Schlie.

He confirmed that there were 23 remaining licence applications from sports betting operators, as well as 14 applications for casino and poker licences. Further licences will be granted in the coming weeks, according to Schlie.

In a statement to the London Stock Exchange this morning, Betfair said that following the receipt of its licence to operate its betting exchange, the company intends to pay 20 per cent of gross gaming revenues derived from Germany to Schleswig Holstein.

Based on current revenue run-rates, Betfair envisages that this payment will reduce Core Betfair's gross margin by approximately one per cent.

“We are delighted to have been awarded one of the first three licences to operate in Schleswig Holstein,” said Betfair's chief legal and regulatory affairs officer, Martin Cruddace. “We look forward to making a significant and sustainable contribution to the newly formed market there, offering consumers innovative products in a safe and responsible betting environment.

“Schleswig Holstein's government should be applauded for its efforts to implement a regulatory regime that will provide security for consumers, transparency for regulators and the freedom to compete for EU operators."

The German state also issued a sports betting licence to PEI Ltd, which is part of the Schleswig Holstein-based JAXX SE Group. The licences will come into immediate effect and will expire on April 30th 2018.

In a statement released this morning, JAXX said that it will now be able to launch its myBet.de website, offering customers sports betting and live betting on sports such as football, tennis, handball among others.

“Bearing in mind that we are based in Schleswig-Holstein, we are of course proud to have been granted one of the first Schleswig-Holstein sports betting licences,” said Mathias Dahms, management board spokesman for JAXX. “The permit for myBet is a document of historic importance because it represents a trailblazing approach to the regulation of the gaming industry.

“The regulatory authorities in Kiel conducted an exhaustive and very demanding examination that in certain respects exceeded the standards applied in other European countries. But Schleswig-Holstein is the only German state to have understood how to go about drafting legislation that complies with both European and constitutional law and takes account of the interests of players, providers and the state in equal measure.

“The draft State Treaty of the other 15 federal states is clearly a shabby compromise that has lost its way in a bureaucratic jungle at federal level. The opposition in the Kiel state parliament, too, will now discover that having its own gaming law is good for the state, and good for its finances.”

JAXX confirmed that myBet had also applied for an online casino and poker licence, but because of the large number of applicants and the exhaustive examination process, Schleswig-Holstein’s Ministry of the Interior has indicated that these licences are likely be issued later this year in summer.

myBet.de partners Fortuna Düsseldorf

Online sports betting firm myBet.de has become a premium partner of 2.Bundesliga side Fortuna Düsseldorf.

The multi-year deal, brokered by sports marketing company Infront Sports & Media, begins with the resumption of second-tier German domestic soccer in early February after its winter break.

Under the terms of its second-tier sponsorship, myBet.de will receive advertising within the view of television cameras at Düsseldorf’s Esprit Arena, hospitality at home matches and other promotional opportunities.

While financial terms were not disclosed, the deal is likely to be worth around US$650,000 per year.

Mathias Dahms, spokesman of the board at JAXX SE, the parent company of myBet.de, said: “Fortuna Düsseldorf is a strong and competitive team – an ambitious club that has a fantastic fan base and suitably ‘good fortune’ as part of its name. It is our ambition to be alongside the team when they get promoted to permanently play in the 1.Bundesliga.”

Peter Frymuth, chief executive of Fortuna Düsseldorf, added: “Through the agreement with myBet.de, Infront has won one of the leading companies in the field of sports betting as a partner for our team, one that will stay committed to the club beyond the current season. The significantly increased popularity of our team has contributed to this achievement, allowing us to announce a new premium partner in our sponsorship landscape already at this point in time.”

The current 2.Bundesliga leaders recently won the 2012 Stadtwerke Düsseldorf Winter Cup, an friendly event they hosted as a warm-up for the continuation of the league season.

Gladbach get gaming deal

Bundesliga side Borussia Mönchengladbach have signed a deal with online gaming company Bet-at-home.

From this weekend, Bet-at-home will become a second tier, co-sponsor of the north west German side, currently exceeding expectations in German soccer’s top division.

The company, which also has a deal with Borussia’s local rivals Schalke 04 and has offices in nearby Düsseldorf, will receive extensive branding positions within the team’s stadium.

The sponsorship, which, according to sponsors.de, will run until the end of the 2012/13 season with an option to extend, is thought to be worth just under €1 million per year.

German Court blocks chances of online gaming

Bwin.Party Digital Entertainment Plc, Betfair and others lost a top appeals court case over Germany’s ban on online gambling.

The Federal Court of Justice, Germany’s highest civil court, said in five suits brought by state-owned lotteries that the prohibition is justified to combat dangers associated with gambling. Shares of Bwin fell as much as 12 percent.

“Because of the greater dangers of the Internet, above all anonymity, lack of social control and accessibility at any time, this sales venue can be subject to stricter regulation,” Presiding Judge Joachim Bornkamm said after the rulings.

The European Union’s top court ruled last year that Germany’s betting monopoly, which allows most sports betting to be done only through state-controlled companies, violates European laws. Germany has faced criticism for allowing private horse betting while outlawing other forms of private sport bets. The EU court ruling didn’t bring an end to the various suits pending in Germany over the issue.

Bwin e.K., the company’s German unit that was involved in the lawsuit, said it will consider whether to file a constitutional complaint. Any such step wouldn’t yield a ruling until the end of this year when the current rules elapse anyway, the company said.

‘Won’t Last can’t last’

“The ban violates European rules and won’t last,” Bwin e.K. said. “A regulated market opening is the only way to combat the black market in Germany and to comply with EU requirements.”
German states are debating on how to revise their state treaty that sets current rules. The state of Schleswig-Holstein has decided to open its market. The state treaty, which took effect in 2008 and is elapsing on Dec. 31, was an effort to take earlier rulings by the EU court and the nation’s constitutional court into account.

Bwin shares fell 6.7 percent to 119.2 pence at the close of London trading after falling as much as 12 percent following the ruling.

Today’s decision matches a June ruling by Germany’s top administrative court, which also cleared the online ban because it covers private offers and government-owned lotteries.

“When looking into whether a regime is coherent, you don’t have to look at the total market,” Bornkamm said. “The online sector is a marked-out area that can easily be viewed as isolated.”
While the states tolerate private horse race betting on the Internet in practice, the volume of those bets is so small they don’t make the whole system incoherent, the judge said.

The court rejected the arguments that Bwin e.K. could make use of a license issued by the former East German government or that exceptions need to apply to companies who hold license from other European countries.

“Our ruling is valid only for the rules that apply until the end of this year,” said Bornkamm.