German Federal Court Sides with GGL in Social Lottery Advertising Case
Germany’s Federal Administrative Court has ruled in favor of the national gambling regulator (GGL) in a legal dispute involving a social lottery provider accused of unlawful advertising. The case revolved around the use of the operator’s logo in educational material promoting charitable work for people with disabilities, which the GGL deemed a violation of gambling advertising rules.
Background of the Case
The social lottery operator initially appealed against the GGL’s ruling at the Administrative Court of Mainz, arguing that the material in question made no explicit reference to gambling products, and thus did not breach federal gambling legislation. The Mainz court sided with the operator, but the GGL subsequently appealed the decision at the Higher Administrative Court of Koblenz.
The Koblenz court issued a partial ruling in favor of the GGL, prompting both parties to escalate the case to the Federal Administrative Court in Mainz (BVerwG), Germany’s highest administrative judicial authority.
Final Ruling by the Federal Administrative Court
In its final ruling, the Federal Administrative Court fully sided with the GGL, dismissing the social lottery provider’s appeal. The court determined that the presence of the operator’s logo in educational materials indirectly promoted its lottery offerings, stating:
“The plaintiff’s logo stands for both his charitable activity and his lottery offer. If it is printed on the title page of information and educational materials, this promotes the image of the lottery. At the same time, it motivates us to support the charitable activities, which are known to be financed mainly by lottery revenues.
Because the logo is known to stand for the lottery as well as for the promotion of inclusion, it also promotes the image of the lottery and motivates the average viewer to join the plaintiff’s charitable activities through lottery participation.”
Implications of the Decision
The ruling reinforces strict limitations on gambling-related advertising in Germany, even when linked to charitable endeavors. It underscores that any promotional material bearing a lottery operator’s branding may be interpreted as indirect gambling advertisement, subject to regulatory restrictions.
The GGL’s victory sets a precedent for how gambling operators can associate their branding with social and charitable initiatives while remaining compliant with Germany’s gambling laws.