Online Lottery Ban To Continue: German Court

Online Lottery Ban To Continue: German Court

The Higher Regional Court of Koblenz in the state of Rheinland-Pfalz, Germany, has ruled in favor of the online lottery ban imposed by the lower court.

The lower court had banned “secondary lotteries” which operate differently from traditional lotteries. In “secondary lotteries” players bet on the result of lottery draws. The court said that these lotteries should not be allowed to be offered online.

The defendant argued that the lottery offered online was just slightly different from traditional lotteries and that it was also legal to offer such lottery games under the State Treaty on Gambling. The defendant also argued that banning the lottery product also contravenes EU laws.

The State Treaty is set to come into effect from January 2019. According to the State Treaty, all forms of online gambling will be banned except lotteries and sports gambling.

The court noted that the product where lottery results were based on the results of other lotteries could not be considered as a lottery; hence it should not be offered online.

Recently, Paypal revised its terms of use in Germany. As per the revised terms, online gambling operators are prohibited from using Paypal’s online gambling platform to process payments for gambling products which are not legal in the jurisdiction in which they are being used.

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