In Germany it is illegal to operate or market an online casino, Sportsbook or Poker Room without a German issued licence.
There are a few in Germany, like betandwin.de – which has a casino. Amusingly, you can fund your sportsbook account with Paypal here, which in turn you can cash in for casino credits …
Interwetten.de is another one with Sports, Casino and Poker – there are a few more.
It is not illegal for players to play at casinos.
What Party Poker have done is set up their for fun url, where you can only play for free – partypoker.net which they are allowed to advertise in Germany with. It can be seen on TV at times as well.