European Court rejects German betting constraints

8 September 2010

German gambling restrictions breach European Union law, the EU's highest court has actually ruled.

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

The ruling might break the ice for foreign betting business to develop an existence in Germany.

A lobby group representing betting firms, consisting of PartyGaming and Bwin, called the judgement a "landmark".

German authorities have justified wagering monopolies by stating that they assist protect consumers from the negative effects of gambling.

But the ECJ said this promotion code was inconsistent with Germany's bet9ja promotion code yohaig and "extensive advertising" of its gaming operations.

The court said: "The German guidelines on sporting bets constitute a constraint on the flexibility to provide services and the yohaig code liberty of establishment.

"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 consistent and organized way."

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

The European Gaming and Betting Association welcomed the ruling.

"this promotion code is a landmark judgment which will have a definitive influence on the much-needed reform in Germany," it said in a declaration.

"Other member states have actually opened or are opening their markets. They show that customers can be much better protected in a market that is both controlled and open to competitors," it said.

However, European Lotteries, a lobby group for national lotteries in 40 nations, disputed whether the ruling would open the German market.

"On the contrary," the group stated in a declaration, "the court advised Germany that it has to manage more strictly the deal of dangerous types of betting such as casino games and video gaming makers.

"The court pointed once again to the greater dangers related to internet gaming."

EGBA

European Lotteries