German Court Limits IP Blocking, GGL Keeps Host Enforcement

Germany’s highest administrative court has delivered a significant ruling that restricts the ability to impose IP blocking mandates on internet access providers under the 2021 State Treaty on Gambling (GlüStV 2021). This decision, issued on March 19, 2025, reinforces earlier findings and fundamentally narrows the legal foundation used by Germany’s gambling regulator, the Joint Gambling Authority of the Länder (GGL), for blocking access to unauthorized gambling websites.

Court Ruling Limits Enforcement Against Access Providers

The Federal Administrative Court (Bundesverwaltungsgericht – BVerwG) confirmed that provisions within Article 9(1) of the GlüStV 2021 do not authorize the GGL to compel internet access resellers—providers who do not own their own network infrastructure but purchase wholesale internet services—to block gambling sites. This landmark judgment upheld decisions from the Administrative Court of Koblenz and the Higher Administrative Court of Rhineland-Palatinate, which had previously ruled in favor of the internet access provider that challenged the GGL’s blocking order.

The court clarified that the specific clause cited by the regulator, Sec. 9 (1) sentence 3 no. 5 GlüStV 2021, is limited to “responsible service providers” as defined under the now-defunct German Telemedia Act (Telemediengesetz – TMG). Since the TMG has been replaced by the Digital Services Act (DSA), this legal foundation no longer applies to telecommunications resellers, thereby invalidating the GGL’s blocking demands against these entities. Moreover, broader enforcement provisions under the same article cannot be used to bypass this limitation, as the more specific clause is exhaustive regarding measures against service providers.

GGL Focuses on Host Providers Despite Legal Setbacks

Despite the setback with IP blocking at the access provider level, the GGL has emphasized that this court ruling will not disrupt its ongoing enforcement strategy, which now concentrates on host providers rather than internet access services. This approach was adopted following earlier 2022 rulings that similarly restricted IP blocking efforts. By targeting host providers, the GGL has succeeded in blocking or rendering inaccessible over 930 domains linked to unlicensed gambling activity, with an average of about 60 new domains added monthly.

While the host-focused enforcement process demands extensive investigative efforts and is more time-consuming, it has been described by the regulator as “very successful.” When illicit operators move to different hosting services, the GGL promptly initiates further enforcement to maintain compliance.

Ongoing Regulatory Reforms to Strengthen Enforcement Powers

The GGL has publicly acknowledged the need to adjust Germany’s gambling legislation to address enforcement gaps exposed by the court’s ruling. The regulator is pushing for amendments to Sec. 9 GlüStV 2021 that would broaden the scope of blocking powers to include illegal gambling advertising. Additionally, the GGL proposes to simplify enforcement procedures by waiving the requirement for prior actions against gambling operators before blocking measures, similar to the streamlined approach used for payment blocking.

These legislative changes were already under consideration before the court’s decision and are currently being expedited in coordination with state authorities. The regulator expects these reforms to be implemented soon, enhancing its ability to tackle illegal gambling more effectively.

Context Within Broader Industry Enforcement

This ruling marks a critical juncture in Germany’s online gambling regulatory framework. Since its inception, the GGL has faced challenges with IP blocking enforcement, especially against offshore gambling sites, as highlighted by a prior court decision invalidating the regulator’s attempt to block Lottoland.

GGL CEO Ronald Benter has called for stronger enforcement powers to resolve these legal obstacles, but the regulator maintains that existing enforcement measures remain robust and effective despite the legal constraints. The regulator recently convened a joint session with regional coordinators focused on consumer protection and harm prevention, underscoring its commitment to safeguarding players within the evolving legal landscape.

Internationally, other regulators have pursued substantial penalties against illegal operators, such as the Spanish regulator’s €77.4 million fines imposed on 14 unauthorized entities earlier this year, demonstrating a global trend towards stringent online gambling enforcement.

Legal Clarity for Internet Providers and Industry Implications

For telecommunications resellers and similar access providers, the court’s decision offers welcomed clarity on their regulatory obligations, reaffirming that enforcement actions must rest on solid legal grounds. The ruling draws a distinct line between the responsibilities of different types of intermediaries within the digital services sector, which could influence future regulatory discussions and enforcement approaches.

Operators and companies affected by similar administrative measures may now be encouraged to reassess their legal standing and challenge any enforcement actions that lack clear statutory support or are disproportionate.

Source:

German Court limits use of IP blocking in gambling enforcement, GGL maintains host-based strategy, gamblinginsider.com, May 20, 2025