Gluecksspiel (GGL), the Federal Gambling Authority of Germany, has issued a direct response to consumer questions related to the Cross-State Gambling Supervision System (LUGAS).
The Federal Authority has published an ‘FAQ section‘ on its website in response to ‘common questions’ about LUGAS functions and how its deposit limit rules are applied across German states, restricting individual spend and activities in online gambling.
The notice references consumer questions such as: “Why do I have a cross-provider deposit limit? Can I have my limit deleted? Can the authority change my limit? Why can’t I play?”
LUGAS’s supervision of cross-provider deposit limits is required by federal law, as mandated by the rules of Germany’s Fourth Interstate Treaty on Gambling – the GlüNeuRStv regime.
All GlüNeuRStv licensed operators must inform new and existing customers to set their cross-border monthly deposit between €1 and €1,000. GGL recognises that deposit exceptions can be made for ‘special occurrences’ which must be documented by licensed operators.
Once verified by LUGAS, customers can change their deposit limits ‘at any time’. However, GGL notes ‘an increase in deposit limits only takes effect after a period of seven days;.
The regulator continued: “Legally, this deadline is calculated so that the increase takes effect at the end of the seventh day after the day of the limit increase.”
Consumers were informed that the LUGAS cross-provider deposit system functions independently of deposit, stake, or loss limits protections offered by individual operators.
GGL cannot set individual limits on deposits, as GlüNeuRStv-licensed operators carry the responsibility of “issuing increased limits” across websites – a the “setting and changing of cross-operator limits is managed by the provider”.
Customer deposits will be restricted once “the cross-provider limit has been reached”, and “remaining balances are irrelevant.” Operators must maintain a record of customers’ failed deposits.
GGL will not address customer complaints about cross-provider limits; which must be directed to individual operators.
Consumers were reminded that cross-provider limits are applied on a monthly basis, as ‘deposit amounts are restored to the customer’s desired amount from the first day of the month’.
The use of a cross-provider deposit limit has been criticised by the German Online Casino Association (DOCV) as a barrier to effective customer safeguards provided by individual operators.
Last month, at a meeting of gambling stakeholders in Dusseldorf, the DOCV demanded that GGL implement ‘instant corrections‘ to the GlüNeuRStv regime.
Advocating for immediate changes, DOCV emphasised that GlüNeuRStv has not fulfilled its primary objective of developing a “controlled central system to protect consumers from online gambling threats”.
Leadership of GGL has stated that it recognises concerns on GlüNeuRStv limitations. Yet, its regulatory focus remains on strengthening the Interstate market against black market infringements, improving player protections and carrying out a review of advertising laws.
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Author: John Sommers
John Sommers is a distinguished figure in the world of gambling expertise, known for his deep knowledge and insightful analysis of the gaming industry. As a seasoned author, he has contributed extensively to the reputable gambling news site, TwinCasinos, focusing on providing valuable insights to English-speaking gamblers worldwide. With a career spanning over a decade, John has honed his expertise in various aspects of gambling, from strategic gameplay to industry trends and regulatory developments. His articles are revered for their blend of comprehensive research, astute observations, and a knack for demystifying complex concepts for both novice and seasoned players. Beyond his writing prowess, John has established himself as a trusted authority, often sought after for his expert commentary on the ever-evolving landscape of the casino and betting industry. His passion for responsible gambling and commitment to ensuring players make informed choices are evident in his work, making him a beacon of integrity in an industry that demands such values. Whether you’re a casual gambler or a dedicated enthusiast, John Sommers’ contributions to TwinCasinos promise to be an invaluable resource for navigating the dynamic world of gambling.
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