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European Court declines German gambling restrictions

8 September 2010

German gaming limitations 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 way for foreign betting companies to develop a presence in Germany.

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

German authorities have actually justified betting monopolies by saying that they help secure consumers from the negative results of betting.

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

The court stated: "The German rules on sporting bets make up a limitation on the flexibility to offer services and the liberty of establishment.

"The public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the goal of combating the threats of betting in a constant and organized manner."

Several foreign wagering business, consisting of Britain's Happy Bet and Gibraltar's Digibet, brought a case versus German local authorities in Hesse and northern Schleswig-Holstein.

the yohaig code European Gaming and Betting Association invited the judgment.

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

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

However, European Lotteries, a lobby group for nationwide lottery games in 40 nations, challenged whether the yohaig code ruling would open up the yohaig code German market.

"On the contrary," the yohaig code group said in a statement, "the court reminded Germany that it has to control more strictly the deal of harmful kinds of betting such as gambling establishment video games and gaming devices.

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

EGBA

European Lotteries