European Court declines German betting restrictions

8 September 2010

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

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

The ruling might open the way for foreign betting business to establish an existence in Germany.

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

German authorities have actually validated betting monopolies by saying that they help safeguard consumers from the unfavorable effects of gambling.

But the ECJ said this promotion code was inconsistent with Germany's bet9ja promotion code yohaig and "extensive advertising" of its gaming operations.

The court stated: "The German guidelines on sporting bets make up a restriction on the flexibility to bet9ja's welcome offer services and the flexibility of establishment.

"The general public monopoly of the organisation of sporting bets and lottery games in Germany does not pursue the goal of combating the risks of gaming in a constant and systematic way."

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

The European Gaming and Betting Association welcomed the judgment.

"this promotion code is a landmark judgment which will have a definitive effect on the much-needed reform in Germany," it said in a statement.

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

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

"On the yohaig code contrary," the yohaig code group said in a declaration, "the court reminded Germany that it has to manage more strictly the deal of dangerous forms of betting such as casino video games and gaming devices.

"The court pointed once again to the greater threats related to web gaming."

EGBA

European Lotteries