SWEEPSTAKES
against the assumption of a fee. Several administrative courts have ruled that the IST 2021 applies only if a fee is charged for participation; which is not the case if, in addition to the paid participation option, an equivalent, practical, and free alternative (e.g., via postcard, email, or the internet) is offered. 14 This is precisely what the sweepstakes model enables: customers have the option to receive Sweep Coins for free by sending in a postcard or using similar methods. Based on this case law, it can therefore already be argued that there is no stake in the required sense, since the customer is given the opportunity to participate in all games free of charge. The element of chance To assess whether the win depends predominantly on chance, German courts apply a “holistic assessment” that takes into account the game rules, mechanics, and typical circumstances of the game. 15 Based on the available game descriptions, the Sweep Coins game mode (just like the Social Coin mode) depends on elements of chance, as the simulated games of chance use corresponding random mechanisms. This criterion is therefore likely to be regularly met in sweepstakes offers. It is therefore all the more important that at least one of the other two elements of the offense – the consideration or the direct link between consideration and the chance of winning – is absent. The element of a direct link between payment and the chance of winning To qualify as gambling under the IST 2021, there must always be a direct link between the stake and the acquisition of a chance to win. 16 This link is unlikely in the sweepstakes model for two reasons: First, customers can also generate Sweep Coins for free. Second, and most importantly, customers should not automatically receive Sweep Coins when purchasing Social Coins. Here, operators would need to make appropriate adjustments for the German market. The offer is also unique in that the customer does not have to spend any money, as they can receive free coins in both game modes. When players do spend money on a package of Social Coins, they do so to obtain more Social Coins for an
enhanced gaming experience. Since these Social Coins have no monetary value and no legal secondary market exists, they cannot be considered an asset. Even if a player purchases Social Coins and is exclusively interested in Sweep Coins, they always receive the specified number of Social Coins first, which calls into question the directness of the connection between the monetary wager and the acquisition of Sweep Coins. Furthermore, if the indicated adjustments are consistently implemented and adhered to, the operator can break the required link between the wager and the acquisition of a chance to win, and it can be legally argued that no gambling within the meaning of the IST 2021 is taking place.
Design
recommendations
for
sweepstakes
operators in the German market The importance of continuous compliance
The outcome of the legal review can only be preliminary. In recent years, regulatory authorities in Germany have stepped up their efforts to combat illegal online offerings. The co- chair of the GGL and the head of its enforcement division have announced a tough stance against unauthorized online offerings in public speeches. This explicitly applies to offers that are disguised as “sweepstakes” but actually constitute illegal gambling. Operators wishing to operate sweepstakes in Germany must therefore strictly adhere to youth and consumer protection regulations and ensure a clear distinction from gambling law. Terminological care A key design consideration concerns the language used on the platform: gambling-related terms such as “stake” or “bet” should be consistently avoided on the platform and in advertising. Although social casinos are generally permitted, the term “casino” should be used sparingly and always only in conjunction with the prefix “social” – i.e., as “social casino.” The same likely applies to terms such as “slots”. Design of the currency system It must be impossible at all times to purchase Sweep Coins directly with money. Any design of the Sweep Coin distribution
14 See Administrative Court of Cologne, judgment of August 31, 2022, file no. 24 L 1095/22, para. 67 ; Administrative Court of Munich, judgment of February 7, 2023, file no. M 27 K 22.3269, para. 46 15 E.g., Federal Administrative Court, judgment of November 28, 1963, file no. I C 69.60, I C 72.60 (Ramso) 16 Cf. Nolte , in: IST 2021 § 3, Becker/Hilf/Nolte/Uwer, Glücksspielregulierung, 1st edition 2016, para. 15; Bringmann/Mittermeier/Löcken , ZfWG 2023, 140 (141)
IMGL MAGAZINE | JUNE 2026
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