European Court turns down German gaming restrictions

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 betting were "unjustifiable".

The judgment might open the method for foreign wagering business to develop an existence in Germany.

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

German authorities have justified wagering monopolies by stating that they assist secure customers from the negative results of gambling.

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

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

"The general public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the goal of combating the dangers of gambling in a consistent and organized manner."

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

the yohaig code European Gaming and Betting Association welcomed the judgment.

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

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

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 said in a declaration, "the court reminded Germany that it needs to control more strictly the bet9ja's welcome offer of harmful forms of betting such as gambling establishment games and gaming devices.

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

EGBA

European Lotteries