European Court rejects German gambling restrictions

8 September 2010

German betting limitations breach European Union law, the EU's greatest court has ruled.

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

The judgment might break the ice for foreign wagering business to establish a presence in Germany.

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

German authorities have actually justified betting monopolies by saying that they assist safeguard consumers from the unfavorable results of gaming.

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

The court said: "The German guidelines on sporting bets make up a constraint on the 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 risks of gambling in a constant and methodical way."

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 European Gaming and Betting Association invited the judgment.

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

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

However, European Lotteries, a lobby group for nationwide lottos in 40 countries, disputed whether the judgment would open the German market.

"On the contrary," the group stated in a statement, "the court advised Germany that it needs to manage more strictly the bet9ja's welcome offer of hazardous forms of gambling such as casino games and gaming makers.

"The court pointed once again to the greater dangers connected with web gaming."

EGBA

European Lotteries