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Red Rhino's Legal Challenge against GGL Ruling Fails

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The Higher Administrative Court of Sachsen-Anhalt has upheld German regulator Gemeinsame Glücksspielbehörde der Länder (GGL)’s fine against Red Rhino for operating illegally in Germany.

Last month, the GGL fined Red Rhino €50,000 (£43,687/$53,006) for running an online gambling business in Germany without a license.

Although a prior warning had led the Malta-based operator to withdraw its German-facing website, Platincasino.de, still accepts bets from players in the jurisdiction through its general website, Platincasino.com. The operator is not licensed by the GGL and is absent on the regulator’s white list of approved brands.

GGL stated that Rhino’s activities breached its national gambling regulations and laws, thus justifying the fine it levied on the operator. The regulator also imposed a "high penalty payment" on the payment service provider that worked with Red Rhino in Germany. However, GGL did not disclose the identity of the payment platform.

Red Rhino Wants Payment Provider Unblocked

In its response to the penalties, Red Rhino decided to take legal action, especially regarding the decision to block its use of the payment provider. The operator hoped the court would grant it legal protection over the matter. However, the court dismissed the complaint, stating that the request would not be applicable since Red Rhino lacks the license to operate in Germany.

According to the court, GGL’s ruling is backed by Section 2, Paragraph 1 of Germany's Glücksspielstaatsvertrags, which gives the regulator the power to block payment services linked with unlicensed operators and websites.

However, the court upheld the decision not to disclose the payment provider's name, as it could potentially implicate its dealings with licensed operators. In its final judgment, the court ruled that GGL’s decision, which was officially confirmed at the end of last week, was backed by law.

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