2.1(a) Eligibility (United States). In addition to the above requirements, to participate in a tournament offered through the Game Service, you must be physically located in a U.S. state in which participation in such tournaments is unrestricted by law. Rules governing sweepstakes, contests, and tournaments with entry fees and/or prizes are established by individual states. Based on these fifty (50) sets of laws, we cannot offer fee-based tournaments with prizes to residents of the States of Arizona, Connecticut, Iowa, Maryland, Nevada, Tennessee and Vermont. 2.1(b) Eligibility (Non-U.S.). Non-U.S. citizens are not eligible to participate in any tournament offered through the Game Service. We may require any tournament participant to provide proof that he or she is eligible to participate according to Sections 2.1(a) and 2.1(b). 2.1(c) In compliance with the United States Internal Revenue Service regulations, we send a Form 1099 to any person who wins in excess of Six Hundred Dollars (US$600.00) in any given calendar year. You remain solely responsible for paying all federal and other taxes in accordance with the laws that apply in your state, province, and/or country of residence. 2.1(d) A new law went into effect April 21, 2000 (The Children's Online Privacy Protection Act) which imposed new rules regarding the collection of personal information from children under the age of thirteen (13). Because the Game Service is not directed to children under the age of thirteen (13), we cannot provide or extend the memberships of individuals under the age of thirteen (13). If you are under the age of thirteen (13), you may not create an account on the Game Service, shall not be eligible to enter any sweepstakes and/or promotions, and are asked not to provide any personal information to SOE.
It may just be that they don't want to deal with the legal implications of people winning from the multitude of other countries that could be playing the game. They may not have come out and said "No Germans" explicitly but it is probably just understood that it would be an expensive hassle to figure out the gambling laws of other countries. (which makes total sense)
The funny thing about the above TOS is that I didn't know it restricted certain US states.
EULA for LON:
Knowledge Base 