German regulator to ISPs: Block Lottoland or pay financial penalty

German federal regulator die Glücksspielbehörde said it would ramp up the pressure on internet service providers to block lottery betting site Lottoland, after it boasted of success in getting some payment providers to sever ties with the business.

The regulator – which took over enforcement of German laws against unlicensed online gambling in July – said it had succeeded in getting some payment providers to stop working with Lottoland.

Lottoland had been the subject of the Glücksspielbehörde’s first payment and IP blocking orders, which the regulator said was because lottery betting is illegal under Germany’s Fourth State Treaty on Gambling. It added at the time that it saw the vertical as particularly harmful, as players may confuse a lottery betting operator for an actual lottery.

Now, the regulator said it would put more pressure on internet service providers to also block Lottoland. It may issue “substantial” penalty payments to internet service providers that do not comply.

“Raising awareness among Internet service providers is extremely important. Providers who fail to prevent access to unauthorised offers despite the GGL’s order face the threat of severe penalty payments,” said board member Ronald Benter.

The regulator also noted that, besides payment and website blocking, it could potentially take further action against unlicensed sites by reporting operators to tax offices, so they may be prosecuted for not paying taxes.

Soon after issuing the initial order against Lottoland, the regulator put forward plans for a new system whereby it would request internet service providers (ISPs) to voluntarily block websites it deems to be operating in the country illegally.

Earlier today, betting giant Tipico became the latest business to be licensed to offer online slots in Germany.

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