European Court turns down German betting restrictions

8 September 2010

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

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

The ruling might break the ice for foreign betting companies to establish a presence in Germany.

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

German authorities have validated betting monopolies by stating that they help secure customers from the unfavorable results of gambling.

But the ECJ stated this promotion code was inconsistent with Germany's bet9ja promotion code yohaig and "intensive marketing" of its gaming operations.

The court stated: "The German rules on sporting bets constitute a limitation on the liberty to supply services and the liberty of facility.

"The general public monopoly of the organisation of sporting bets and lottery games in Germany does not pursue the yohaig code goal of combating the dangers of betting in a constant and methodical manner."

Several foreign wagering business, including 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 ruling.

"this promotion code is a landmark ruling 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 customers can be much better protected in a market that is both controlled and available to competition," it said.

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

"On the contrary," the group stated in a statement, "the court reminded Germany that it has to manage more strictly the bet9ja's welcome offer of harmful types of betting such as casino games and gaming devices.

"The court pointed again to the greater dangers related to web betting."

EGBA

European Lotteries