Gambling platform Lottoland secures a licence in Germany, getting listed on the Gaming Regulators' Committee's (GGL) whitelist
Lottoland Receives License to Legally Mediate Online Lotteries in Germany
In a significant development for the online gambling industry, the German Gaming Authority (GGL) has granted a license to Lottoland to legally mediate online lotteries in Germany. This move comes after Lottoland demonstrated strong compliance with regulatory requirements, ensuring customer protection, financial reliability, and adherence to national gambling laws.
The reasons behind the licensing approval are rooted in Lottoland's robust regulatory compliance. The company holds multiple licenses from reputable authorities such as the Gibraltar Gambling Commissioner, the UK Gambling Commission, and others. These licenses necessitate adherence to strict rules on fair play, security, and customer protection, indicating that Lottoland operates under a high level of regulatory oversight.
Financial stability and guaranteed payouts are another key factor. Lottoland secures these by working with leading insurance companies that cover prizes, ensuring financial reliability and player trust. This financial backing is essential for maintaining market integrity and avoiding solvency risks.
Strict customer verification and anti-fraud measures are also in place. Lottoland enforces Know Your Customer (KYC) processes, requiring identity verification through official documents, thus meeting anti-money laundering and fraud prevention requirements mandated by gambling regulators.
Commitment to player protection and responsible gambling is another aspect of Lottoland's operations. The company implements secure encryption and offers features for safer gambling, aligning with modern regulatory standards aimed at protecting vulnerable players.
Despite the controversy surrounding Lottoland as a provider of illegal second lotteries in Germany, the company's licensed status now ensures player protection. It's important to note that no legal transaction takes place between Lottoland Deutschland GmbH and German players within the scope of commercial game mediation, as second lotteries are still illegal in Germany.
Other German lottery companies, such as WestLotto and Lotto Baden-Württemberg, are also emphasizing player protection and high security standards. WestLotto cooperates with OpenBet and uses Neccton technology for money laundering prevention and early fraud detection, while Lotto Baden-Württemberg's platform erwin enables participation in state lotteries in addition to offering online slots.
The GGL initiated an administrative procedure against Lottoland in 2022 due to unauthorized gambling in Germany. However, the reasons for granting a German license to Lottoland have not been officially announced. It remains uncertain whether other online lottery providers will receive an official license from the GGL, in addition to Lottoland.
The German lottery market saw a record turnover of 8.2 billion euros in 2023, with popular lotteries such as 6 aus 49, GlückSpirale, and EuroJackpot among the favourites. Despite the success of these state-licensed lotteries, players with providers of second lotteries in Germany have no right to a payout, as it is an illegal offer.
Magnus von Zitzewitz, CEO of Lottoland Germany, commented on the license grant for Lottoland Germany and its inclusion in the GGL whitelist. With this license, Lottoland can legally mediate state online lotteries in Germany, offering a legitimate alternative to unlicensed second lotteries.
What is the significance of Lottoland's new license for the business world, particularly in the context of finance and casino-and-gambling? This license allows Lottoland to legally mediate online lotteries in Germany, demonstrating financial stability through its work with leading insurance companies and ensuring compliance with regulatory requirements and national gambling laws.
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