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European Court rejects German gambling restrictions
8 September 2010
German gaming restrictions breach European Union law, the EU's greatest court has ruled.
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The European Court of Justice (ECJ) stated German laws that secure state monopolies for gaming were "unjustifiable".
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The ruling could break the ice for foreign wagering companies to develop a presence in Germany.
A lobby group representing gaming firms, consisting of PartyGaming and Bwin, called the judgement a "landmark".
German authorities have actually validated betting monopolies by saying that they assist safeguard customers from the unfavorable results of gaming.
But the ECJ said this promotion code was inconsistent with Germany's yohaig promotion code and "intensive advertising" of its betting operations.
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The court said: "The German guidelines on sporting bets make up a constraint on the flexibility to supply services and the flexibility of facility.
"The public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the objective of combating the threats of gambling in a constant and systematic way."
Several foreign betting business, consisting of 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 welcomed the judgment.
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"This is a landmark ruling which will have a decisive influence on the much-needed reform in Germany," it stated in a declaration.
"Other member states have actually opened or are opening their markets. They reveal that consumers can be much better secured in a market that is both controlled and available to competition," it said.
However, European Lotteries, a lobby group for national lotteries in 40 nations, contested whether the judgment would open up the German market.
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"On the contrary," the group said in a statement, "the court reminded Germany that it needs to control more strictly the bet9ja's welcome offer of of betting such as casino games and gaming machines.
"The court pointed again to the greater threats related to internet gaming."
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European Court Rejects German Gambling Restrictions
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