Germany's state governments have been cleared to block financial transactions to unlicensed online gaming sites following a legal review of the State Treaty on Gambling, although divisions remain about the effectiveness of such an approach.

The review focused on data protection issues and determined that the gaming authority of Lower Saxony is responsible for illegal gaming under the terms of the State Treaty. It also determined that under section nine of the Treaty, supervisory authorities can prohibit financial institutions from processing payments for unauthorised operators, subject to prior notification of which operators constitute illegal operators.

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