Two entities, GGL and DSWV, express their disapproval towards rumors of a secret deal aimed at expanding gambling deposit limits, with a veil of confidentiality involved.
Gambling Authorities Dispel Claims of Secret Agreement on Deposit Limits
Written by Timm Schaffner, Edited by Angela Burke
In the face of mounting allegations, the Joint Gambling Authority of the States (GGL) and the German Sports Betting Association (DSWV) have unequivocally dismissed speculations of a covert agreement between federal states and gambling providers to boost deposit limits. Both organizations stand firm that the Schufa-G query is a legitimate method for adjusting deposit limits.
GGL Stays the Course
Recent disclosures suggested that an elaborate, undisclosed agreement between interior ministers of the federal states and online gambling providers allowed for circumvention of the €1,000 deposit limit set out in the State Gambling Treaty. By obtaining a Schufa-G information, players could bypass the need to provide extensive income or asset evidence and secure higher deposit limits.
In a Q&A, the GGL asserts that the Schufa-G information serves as a permissible tool for assessing a player's economic performance capacity, thus protecting them by ensuring that only financially competent individuals receive higher deposit limits. The GGL insists that this approach has been in line with the State Gambling Treaty since its inception, with no secret agreements underhanded.
DSWV Counters Claims of Secret Pact
The DSWV shows no mercy in its criticism of the sensationalized portrayal of a clandestine agreement regarding the Schufa-G query. Not only does the association consider the characterization as a secret agreement to be unfounded, but it also points out that this procedure is a publicly known court settlement, dating back to 2024 – as determined by the Administrative Court of Darmstadt and documented in official reports.
DSWV Disputes Gambling Addiction Statistics
Concurrently, the alleged count of 1.3 million gambling addicts in Germany has been referenced frequently. The DSWV, however, disagrees with this controversial statistic, which was collated as part of the Gambling Atlas 2023. Multiple experts have questioned the statistic's veracity, with criticism mounting.
GGL Eyes Case Law for Guidance
Amidst the controversy surrounding the Schufa-G query, the GGL has announced that it will continually review the procedures employed, including the Schufa-G query. Should new court rulings suggest a reevaluation of procedural rules is necessary, the GGL may issue updated guidelines for the application of the procedures.
As of now, it appears that the GGL is awaiting a final court decision before reconsidering the appropriateness of using the Schufa-G query for risk assessment purposes. Even though the Higher Administrative Court of Saxony-Anhalt had previously ruled that the Schufa-G query was inappropriate for this role, the GGL based in the same federal state seems unphased and is not yet reevaluating its approach.
*ema: The Schufa-G Query
- Schufa-G Query: Schufa, a major German credit agency, participates in various types of data collection and reporting activities. In the context of gambling, a Schufa-G query might involve examining financial data pertaining to gambling habits or financial responsibility.
- Deposit Limits: Deposit limits are a part of responsible gambling regulations in Germany, designed to promote responsible gaming practices and limit potential harm.
- GGL and DSWV Stance: The GGL is tasked with enforcing gambling regulations and ensuring that operators adhere to responsible gaming practices. The DSWV represents sports betting operators and advocates for fair and effective regulation that balances consumer protection with industry needs.
- Use of Financial Data: While specific statements regarding the utilization of Schufa-G queries for setting deposit limits may not be publicly available, the general approach in Germany involves using multiple data points to ensure responsible gaming practices, including financial data where applicable and legally permissible.*
- What's the status of the alleged secret agreement on deposit limits between GGL, federal states, and gambling providers? The authorities have unequivocally dismissed such speculations.
- GGL asserts that the Schufa-G query is a legitimate method for assessing a player's economic performance capacity, protecting financially competent individuals from higher deposit limits.
- Recent disclosures suggested an agreement allowing for circumvention of the deposit limit, but the GGL insists no such secret deals have occurred.
- The Schufa-G query, a tool used by the GGL, is a matter of public record, as confirmed by the Administrative Court of Darmstadt in 2024.
- The DSWV disputes the gambling addiction statistics, which was collated as part of the Gambling Atlas 2023, as it has faced criticism regarding its veracity.
- The GGL is awaiting a final court decision before reconsidering the appropriateness of using the Schufa-G query for risk assessment purposes.
- The gambling industry is closely watching the developments in this case, as it pertains to personal-finance practices and the broader financial sector (finance, investing, fintech).
- Not only has the DSWV countered claims of a secret pact involving the Schufa-G query, but it has also faced a storm of criticism for sensationalism in the media coverage relating to this issue, including casino-and-gambling, casino-personalities, and general-news; even crime-and-justice outlets have weighed in.
