No payments to online casinos

The Lower Saxony Ministry of the Interior has prohibited another payment service provider from processing payments for online casinos that are not permitted in Germany. In a communication, Interior Minister Boris Pistorius (SPD) emphasizes that financial companies must finally live up to their responsibilities. They are "legally obliged to refrain from making payments in connection with unauthorized gambling. If they do not, we will take action," said Pistorius.

Online casinos

The order of the Lower Saxony Ministry of the Interior applies nationwide. When it comes to gambling https://casinobonusesfinder.ca/online-casinos/sports-interaction-casino ervision, the federal states have divided up some tasks. Among other things, Lower Saxony is responsible for transnational measures to prevent payment flows for illegal gambling. The Ministry in Hanover did not announce which company it was specifically. According to NDR information, the provider should operate internationally and have its headquarters in London. In addition, the ministry announced that further prohibition orders are in preparation.

Payments to online casinos are prohibited by law

With a few exceptions, online casinos are not allowed in Germany. Only in Schleswig-Holstein do some casinos have a license, which is only valid for players from Schleswig-Holstein. Nevertheless, numerous online casinos advertise for players from all over Germany.

Online casinos

Participation in unauthorized gambling is also so easy because numerous banks and payment service providers still allow deposits and withdrawals at these casinos - although this is prohibited by law. NDR reporters already reported in 2017 that banks may be guilty of money laundering.

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PayPal: withdrawn from casino market

Lower Saxony, on the other hand, has recently taken action. Last June, the Ministry of the Interior in Hanover publicly announced that it had forbidden a "large, internationally active payment service provider to participate in payment transactions in connection with gambling illegal in Germany".

According to NDR information, this is PayPal, one of the world's leading providers of payment services on the Internet. PayPal said on request that they had not taken action against the prohibition and withdrew from the casino market.

Prohibition of participation regulated in the State Treaty on Gambling

At the beginning of the year, the ministry sent a letter to banking associations that the industry must finally comply with the applicable laws. Specifically, the ministry is reminding the financial sector of the so-called prohibition of participation,which is regulated in the State Treaty on Gambling. Accordingly, everyone involved in payment transactions is prohibited from participating in payments in connection with unauthorized gambling. "This prohibition of participation applies directly and obliges the payment service provider to take appropriate independent measures," the letter says.

Individual administrative measures are apparently working

In fact, the online casino market has shrunk over the past year, according to figures from countries' gambling regulators. Individual administrative measures are apparently working. Nonetheless, illegal casinos continue to advertise for German customers - and many large sports betting providers also offer illegal casinos. Participation in forbidden gambling for money on the Internet is still possible from Germany without any problems.

It is currently unclear what effects the corona crisis will have on gaming behavior. As reported by NDR, individual casinos are currently trying to attract new players.