SWEEPSTAKES
debate. Sweepstakes offerings are not expressly prohibited in this country, but neither are they expressly permitted. Whether a specific offering falls under the definition of gambling in the IST 2021 depends on a careful case-by-case analysis of the three cumulative elements. If there are serious concerns regarding at least one fundamental aspect of gambling under national law, the offer is not to be classified as gambling. To ensure this, however, the offer must be continuously adapted to the requirements of the competent authorities. The challenge for operators, therefore, lies not in a one-time legal review, but in an ongoing compliance process. Anyone wishing to operate a sweepstakes offering in Germany without falling under gambling regulations must not only carefully restructure the dual-currency system but also continuously align the entire platform
design, advertising, and user communication with the requirements of the GGL and relevant case law. Regulatory developments in Germany are subject to constant change due to political developments, regulatory interventions at the national and EU levels, judicial rulings, and lobbying by stakeholders in the German gambling market. A look at developments in the United States should serve as a warning: what appears today to be a mere legal loophole may be closed by lawmakers tomorrow. Smart operators will therefore not only meet current minimum legal requirements but will already be working toward an operational model that can withstand stricter regulation – whether through a conservative design of the payment system, robust consumer protection measures, or transparent and responsible communication with users.
DR. ANDREAS WOERLEIN LL.M. Rechtsanwalt (German attorney), Melchers For information contact a.woerlein@melchers-law.com +49 6221 - 18 50 - 1412
DR. MATTHIAS SPITZ Partner, Melchers
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