Yes, it seems like the restriction is only for Germany for now, but its only a matter of time before more countries follow suit. This kind of government-mandated blocking is becoming increasingly common globally, especially concerning content deemed illegal, harmful, or simply undesirable by national laws.
This could very well be the beginning of the end for freebitco.in in the EU, or at least its current form.
Germany isn't first country to block Freebitco.in. They're blocked in Australia:
https://www.acma.gov.au/articles/2024-11/acma-blocks-more-illegal-online-gambling-websitesAnd maybe in some other countries, just can't remember exactly.
I doubt that's beginning of the end for them in EU. Each country has their own regulations, some is more strict, some is less. If Freebitco.in want to continue operating in countries like Germany, they will have get local license and maybe even make things like KYC.