European Court rejects German gaming limitations

8 September 2010

German gaming constraints breach European Union law, the EU's greatest court has ruled.

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

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

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

German authorities have actually validated wagering monopolies by stating that they assist safeguard consumers from the unfavorable impacts of gaming.

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

The court stated: "The German rules on sporting bets make up a restriction on the yohaig code 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 threats of betting in a constant and organized way."

Several foreign wagering business, including 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 ruling.

"this promotion code is a landmark ruling which will have a definitive influence on the much-needed reform in Germany," it stated in a statement.

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

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

"On the contrary," the yohaig code group stated in a declaration, "the court reminded Germany that it needs to control more strictly the deal of harmful kinds of betting such as casino video games and gaming devices.

"The court pointed once again to the higher threats associated with internet gaming."

EGBA

European Lotteries