European Court declines German gambling limitations

8 September 2010

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

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

The judgment might break the ice for foreign betting business to develop a presence in Germany.

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

German authorities have validated wagering monopolies by stating that they help secure consumers from the negative results of gaming.

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

The court said: "The German guidelines on sporting bets constitute a constraint on the freedom to provide 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 dangers of gaming in a constant and methodical manner."

Several foreign wagering business, 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 invited the judgment.

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

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

However, European Lotteries, a lobby group for nationwide lottos in 40 nations, challenged whether the ruling would open up the yohaig code German market.

"On the contrary," the group stated in a statement, "the court advised Germany that it has to control more strictly the deal of harmful forms of gambling such as gambling establishment video games and gaming makers.

"the yohaig code court pointed once again to the greater risks associated with web betting."

EGBA

European Lotteries