European Court Rejects German Gambling Restrictions
European Court turns down German betting constraints
8 September 2010
German gaming constraints breach European Union law, the EU's greatest court has ruled.
The European Court of Justice (ECJ) said German laws that secure state monopolies for betting were "unjustifiable".
The judgment could break the ice for foreign wagering companies to develop an existence in Germany.
A lobby group representing gaming companies, including PartyGaming and Bwin, called the judgement a "landmark".
German authorities have justified betting monopolies by stating that they assist secure consumers from the unfavorable effects of gaming.
But the ECJ stated this was inconsistent with Germany's promo and "extensive advertising" of its gambling operations.
The court stated: "The German guidelines on sporting bets make up a limitation on the flexibility to offer services and the liberty of establishment.
"The general public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the goal of combating the threats of gaming in a constant and methodical way."
Several foreign betting business, including Britain's Happy Bet and Gibraltar's Digibet, brought a case versus German local authorities in Hesse and northern Schleswig-Holstein.
The European Gaming and Betting Association invited the ruling.
"This is a landmark ruling which will have a decisive impact 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 consumers can be better safeguarded in a market that is both controlled and open up to competitors," it stated.
However, European Lotteries, a lobby group for nationwide lottos in 40 countries, disputed whether the judgment would open up the German market.
European Court turns down German betting constraints
8 September 2010
German gaming constraints breach European Union law, the EU's greatest court has ruled.
The European Court of Justice (ECJ) said German laws that secure state monopolies for betting were "unjustifiable".
The judgment could break the ice for foreign wagering companies to develop an existence in Germany.
A lobby group representing gaming companies, including PartyGaming and Bwin, called the judgement a "landmark".
German authorities have justified betting monopolies by stating that they assist secure consumers from the unfavorable effects of gaming.
But the ECJ stated this was inconsistent with Germany's promo and "extensive advertising" of its gambling operations.
The court stated: "The German guidelines on sporting bets make up a limitation on the flexibility to offer services and the liberty of establishment.
"The general public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the goal of combating the threats of gaming in a constant and methodical way."
Several foreign betting business, including Britain's Happy Bet and Gibraltar's Digibet, brought a case versus German local authorities in Hesse and northern Schleswig-Holstein.
The European Gaming and Betting Association invited the ruling.
"This is a landmark ruling which will have a decisive impact 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 consumers can be better safeguarded in a market that is both controlled and open up to competitors," it stated.
However, European Lotteries, a lobby group for nationwide lottos in 40 countries, disputed whether the judgment would open up the German market.