German Court Upholds Ban on Secondary Lotteries

A Higher Regional Court in Germany has upheld the country’s prohibition against secondary lotteries.

The Higher Regional Court of Koblenz in the state of Rheinland-Pfalz has confirmed an earlier ruling by the city’s lower court that the “secondary lotteries” may not be offered online in the country.

A Gibraltar-based defendant appealed the lower court’s ruling and argued that secondary lotteries’ offering was a variant of a traditional lottery and as such was legal under the State Treaty on Gambling. The State Treaty, which is due to come into force from 1 January 2020, will ban all online gambling, with exceptions for lotteries and sports betting.

However, the appeal was dismissed by the higher court. The court ruled that secondary lotteries cannot be considered lottery and, therefore, must not be offered online. The court added that the measures do not amount to a restriction on the freedom to provide goods and services under EU law.