In the wake of the Wirecard scandal, the Deutsche Spielbankenverband (DSbV), Germany’s gaming machine operator association, has called on all payment processors to stop facilitating payments from unregulated gaming platforms.
The DSbV CEO Otto Wulfdering released a statement to say that Wirecard had heavily been involved in online betting in Germany and the fact that the company filed for bankruptcy after disclosing that €1.9 billion was missing from its accounts is a wakeup call for the payments industry. He went ahead and praised Visa and PayPal for distancing themselves from illegal online gambling operators.
According to Wulfdering, online casino sites that accept players from Germany without a German license are breaching the regulatory framework as they don’t fulfill the conditions put in place for the safety and security of player transactions.
Wulfdering also petitioned for a stop to what he referred to as “incoherent case law” around online betting. At the moment, the German states are talking over a possible transition period that would permit operators to carry on providing online casino services before the vertical is legalized in July 2021.
Discussions are currently undergoing ahead of the official implementation of the long-awaited gaming laws dubbed, Glücksspielneuregulierungstaatsvertrag (GlüNeuRStV) from 1 July 2021. Right now, the GlüNeuRStV framework is being vetted by the European Commission before Germany finally implements an online market outside sports gambling for the first time.
Currently, payment providers are prohibited by the law to cease processing payments from betting platforms that don’t abide by Germany’s gaming regulations. Failure to abide by these rules could mean that the payment processor is barred from running any operations in Germany entirely.