GERMANY Law and Practice Contributed by: Jörg Hofmann, Matthias Spitz and Michelle Hembury, Melchers
• the Law for the Protection of Children and the Youth; • the Interstate Treaty on the Protection of Children and Minors in the Media; and • the Interstate Treaty on Broadcasting. Other laws and guidance may apply depending on the product in question. 9.4 Restrictions on Advertising As a general principle, only licensed operators may advertise and only licensed products may be adver- tised. The Interstate Treaty, however, defines addition- al restrictions with regard to TV and online advertising applicable to: • licensed sports betting; • horse race betting; • online poker; • virtual slot games; • online casino games; and According to the Interstate Treaty, advertising and sponsorship for licensed gambling operators in Ger- many will be permitted in general, whereby individual special features of the game of chance may also be highlighted, such as in the case of lotteries, the size of the jackpot or the use of the proceeds for good causes. However, on the internet and on radio and television, gambling advertising for virtual slot games, online poker and online casino games is only permit- ted between 9pm and 6am. Additionally, virtual slot- machine games must not be described as “casino games”. Sports Betting • lottery advertising. Licensed Gambling This “watershed” does not concern advertising for sports betting, but it is worth noting that immediately before or during the live broadcast of sporting events, advertising for sports betting on that sporting event is not permitted on the broadcast channel. Sponsorship Section 5 (3) of the Interstate Treaty is important for companies engaged in sponsorship, since according to this, advertising for sports betting with active ath-
letes or sports officials is not permitted. This applies, in particular, to the popular kind of advertising with brand ambassadors. Perimeter advertising and jer- sey advertising would still be allowed in sports arenas and stadiums. However, the advertising of games of chance in sports facilities (on jerseys and boards, as well as similar advertising material) will only be permit- ted in the form of family brand advertising (umbrella advertising). Advertising of unauthorised gambling remains prohibited (Section 5 (7) of the Interstate Treaty). Advertising Standards Certain advertising standards apply, such as the pro- hibition of misleading, excessive or native advertising. Remuneration Finally, affiliates may only receive fixed – and not vari- able – remuneration for advertising. 9.5 Sanctions/Penalties Sanctions and penalties for infringing advertising reg- ulations vary depending on the type of violation, its gravity and the overall situation affecting the gambling offering that is being advertised. Advertising-related enforcement by German authorities overall, however, has been limited in the past, but is expected to pick up. Competitors, especially the state-owned lottery companies, may seek to challenge certain advertising by filing cease-and-desist orders with German civil law courts. 10. Acquisitions and Changes of Control 10.1 Disclosure Requirements Disclosure requirements for acquisition and change of control of gaming and gambling companies vary depending on the state and product in question. They tend to be rather vague and generally lack specifica- tion with regard to the exact percentages triggering notification and timings. More specific guidance is sometimes included in the relevant licences and some requirements can be derived from corporate law. Licensed operators under the Interstate Treaty are subject to transparency rules. All partners of partner-
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