European Court rejects German betting constraints

8 September 2010

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

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

The ruling could break the ice for foreign wagering companies to develop an existence in Germany.

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

German authorities have actually justified wagering monopolies by stating that they help safeguard customers from the unfavorable results of gambling.

But the yohaig code ECJ said this was inconsistent with Germany's promo and "extensive marketing" of its betting operations.

The court said: "The German rules on sporting bets make up a restriction on the liberty to supply services and the freedom of establishment.

"The public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the objective of combating the risks of gambling in a constant and methodical 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 European Gaming and Betting Association invited the judgment.

"This is a landmark judgment which will have a definitive influence on the much-needed reform in Germany," it stated in a statement.

"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 regulated and open up to competition," it stated.

However, European Lotteries, a lobby group for national lottos in 40 countries, challenged whether the ruling would open the German market.

"On the contrary," the group said in a declaration, "the court reminded Germany that it has to control more strictly the deal of hazardous types of betting such as casino video games and video gaming machines.

"The court pointed once again to the higher dangers related to internet betting."

EGBA

European Lotteries