European Court rejects German betting limitations

8 September 2010

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

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

The judgment could open the way for foreign betting companies to develop an existence in Germany.

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

German authorities have justified betting monopolies by stating that they assist safeguard consumers from the negative results of betting.

But the ECJ stated this promotion code was irregular with Germany's bet9ja promotion code yohaig and "intensive advertising" of its betting operations.

The court stated: "The German rules on sporting bets make up a constraint on the flexibility to bet9ja's welcome offer services and the flexibility of establishment.

"The general public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the goal of combating the risks of betting in a constant and methodical way."

Several foreign wagering companies, 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 ruling.

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

"Other member states have actually opened or are opening their markets. They show that customers can be much better secured 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, challenged whether the ruling would open up the German market.

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

"The court pointed again to the greater risks related to web gambling."

EGBA

European Lotteries