European Court declines German gambling limitations

8 September 2010

German gaming constraints breach European Union law, the yohaig code EU's highest court has actually ruled.

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

The ruling could open the method for foreign wagering business to develop a presence in Germany.

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

German authorities have actually justified wagering monopolies by saying that they help secure consumers from the unfavorable effects of betting.

But the ECJ stated this promotion code was inconsistent with Germany's promo and "intensive marketing" of its betting operations.

The court stated: "The German guidelines on sporting bets make up a constraint on the freedom to offer services and the liberty of establishment.

"The general public monopoly of the organisation of sporting bets and lottery games in Germany does not pursue the objective of combating the risks of gaming in a consistent and methodical manner."

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

The European Gaming and Betting Association welcomed the ruling.

"this promotion code is a landmark ruling which will have a decisive impact on the much-needed reform in Germany," it said in a declaration.

"Other member states have actually opened or are opening their markets. They reveal that consumers can be much better safeguarded in a market that is both regulated and open up to competitors," it said.

However, European Lotteries, a lobby group for national lottery games in 40 nations, contested whether the judgment would open the German market.

"On the contrary," the group stated in a statement, "the court reminded Germany that it has to manage more strictly the offer of unsafe forms of gambling such as gambling establishment games and video gaming machines.

"The court pointed once again to the greater risks connected with internet betting."

EGBA

European Lotteries