European Court turns down German gambling restrictions

8 September 2010

German betting limitations breach European Union law, the EU's greatest court has actually ruled.

The European Court of Justice (ECJ) stated German laws that safeguard state monopolies for gambling were "unjustifiable".

The judgment could break the ice for foreign wagering companies to develop an existence in Germany.

A lobby group representing gambling firms, including PartyGaming and Bwin, called the judgement a "landmark".

German authorities have validated betting monopolies by stating that they help safeguard customers from the negative results of gambling.

But the ECJ stated this promotion code was irregular with Germany's promo and "extensive advertising" of its gambling operations.

The court said: "The German rules on sporting bets constitute a limitation on the flexibility to supply services and the freedom of facility.

"The general public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the objective of combating the threats of gaming in a constant and methodical manner."

Several foreign betting business, consisting of Britain's Happy Bet and Gibraltar's Digibet, brought a case versus German local authorities in Hesse and northern Schleswig-Holstein.

The European Gaming and Betting Association invited the judgment.

"this promotion code is a landmark ruling which will have a definitive effect on the much-needed reform in Germany," it stated in a statement.

"Other member states have opened or are opening their markets. They reveal that consumers can be better protected in a market that is both controlled and open to competition," it stated.

However, European Lotteries, a lobby group for nationwide lottos in 40 nations, contested whether the ruling would open the German market.

"On the contrary," the group stated in a declaration, "the court reminded Germany that it needs to control more strictly the bet9ja's welcome offer of hazardous types of gambling such as casino video games and video gaming machines.

"The court pointed once again to the greater threats associated with web gambling."

EGBA

European Lotteries