GERMANY TAKES FURTHER ACTION AGAINST ONLINE GAMBLING PAYMENT PROCESSORS
The ministry of interior and sport of the German state of Lower Saxony has issued a prohibition order against an international payment processor which it accuses of facilitating illegal online gambling.
The Lower Saxony ministry has national authority and has been working closely with the interior ministry of Hesse, the state responsible for national licensing, to prevent unlicensed online gaming operators from serving German consumers.
The ministry said Monday that it has prohibited an international payment processor from facilitating illegal gambling transactions in the country, making it the second major payment processor to receive a prohibition order following the initial order issued to an international payment provider in June 2019.
“We expect companies in the financial sector to live up to their responsibilities and to critically review and, if necessary, immediately stop working with companies that practice illegal gambling,” said Boris Pistorius, minister of the interior and sport in Lower Saxony. “They are legally obliged to refrain from making payments in connection with illegal gambling — if they do not, we will take action.”
German law currently allows for online lottery sales and sports betting, while online casino gaming is prohibited with the exception of the state of Schleswig-Holstein, which has its own online gaming legislation.
The Lower Saxony ministry added that payment processors can play an essential role in preventing illegal online gambling and urged all companies active in the German market to comply with the law.
“Payment service providers must finally comply with their legal obligation and prevent payments in connection with illegal gambling,” Pistorius warned, adding that those who fail to comply will be banned from the market.
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