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European Court turns down German betting constraints
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8 September 2010
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German gaming limitations breach European Union law, the EU's highest court has ruled.
The European Court of (ECJ) said German laws that safeguard state monopolies for betting were "unjustifiable".
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The judgment could break the ice for foreign betting business to develop a presence in Germany.
A lobby group representing gaming firms, consisting of PartyGaming and Bwin, called the judgement a "landmark".
German authorities have actually validated wagering monopolies by stating that they assist secure consumers from the negative effects of gambling.
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But the ECJ stated this promotion code was irregular with Germany's yohaig promotion code and "extensive advertising" of its gaming operations.
The court stated: "The German rules on sporting bets make up a constraint on the flexibility to supply services and the freedom of establishment.
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"The public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the goal of combating the dangers of gaming in a consistent and systematic manner."
Several foreign betting 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 welcomed the ruling.
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"this promotion code is a landmark judgment which will have a definitive influence on the much-needed reform in Germany," it said in a declaration.
"Other member states have actually opened or are opening their markets. They reveal that consumers can be much better secured in a market that is both controlled and open up to competitors," it stated.
However, European Lotteries, a lobby group for nationwide lottos in 40 nations, contested whether the ruling would open up 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 dangerous types of gambling such as casino games and gaming machines.
"The court pointed once again to the greater dangers related to web betting."
EGBA
European Lotteries
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European Court Rejects German Gambling Restrictions
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