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Germany – Lower Saxony prohibits further international payment service providers

By - 28 April 2020

The Lower Saxony Ministry of the Interior and Sports has once again prohibited an internationally active payment service provider from participating in payment transactions in connection with illegal gaming in Germany.

The decision applies nationwide. Lower Saxony is thus continuing its measures to enforce the ban on participation in payment transactions, which is regulated by the international treaty. In June last year, the Lower Saxony Ministry of the Interior issued an initial prohibition order against a large company in the financial sector

Lower Saxony’s Minister of the Interior and Sports, Boris Pistorius, said: “We still 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. They are legally obliged to refrain from making payments in connection with illegal gambling – if they do not, we will take action. ”

Offering games of chance on the Internet is prohibited in Germany under the applicable State Treaty on Gaming. Exceptions only apply to the distribution of state lottery products, sports betting and – due to a special state law – in Schleswig-Holstein. For online casino games, including online poker, on the other hand, it is still the case that organising and mediating via the Internet is prohibited due to the high risk of addiction, manipulation and money laundering and is also punishable. Young people in particular are at risk of addiction.

Payment service providers are legally obliged to refrain from making payments in connection with unauthorised gambling. An essential part of the infrastructure required for unauthorised gambling would disappear and the action against unauthorised gambling could be sustainably successful if payment service providers act in accordance with the law and no longer make such payments. It is up to the company to decide which measures it takes to comply with the legal obligation. “Payment service providers must finally meet their legal obligations and stop payments related to illegal gambling. How you go about it is up to you. The successful measures taken by individual payment service providers show

If the payment service providers do not comply with the ban on participation, they can be officially prohibited from participating in payment transactions after prior notification of unauthorised gambling offers. The Lower Saxony Ministry of the Interior and Sport is centrally responsible for the whole of Germany. Further prohibition orders are in preparation and are expected to follow.

Caption: Boris Pistorius

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