European Court turns down German gaming constraints

8 September 2010

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

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

The ruling could break the ice for foreign betting companies to establish an existence in Germany.

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

German authorities have actually validated wagering monopolies by stating that they assist protect customers from the negative results of betting.

But the ECJ stated this promotion code was inconsistent with Germany's bet9ja promotion code yohaig and "intensive marketing" of its gambling operations.

The court said: "The German rules on sporting bets make up a restriction on the yohaig code flexibility to supply services and the liberty of establishment.

"The public monopoly of the organisation of sporting bets and lottery games in Germany does not pursue the objective of combating the threats of gambling in a consistent and systematic way."

Several foreign betting companies, including 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 invited the judgment.

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

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

However, European Lotteries, a lobby group for nationwide lottery games in 40 countries, contested whether the ruling would open up the German market.

"On the yohaig code contrary," the group said in a statement, "the yohaig code court advised Germany that it has to manage more strictly the deal of dangerous forms of gambling such as casino video games and gaming makers.

"the yohaig code court pointed again to the higher dangers associated with internet betting."

EGBA

European Lotteries