European Court declines German betting constraints
8 September 2010
German gambling restrictions breach European Union law, the EU's greatest court has actually ruled.
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The European Court of Justice (ECJ) said German laws that protect state monopolies for gaming were "unjustifiable".
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The ruling could open the method for foreign betting to develop a presence in Germany.
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A lobby group representing gambling companies, consisting of PartyGaming and Bwin, called the judgement a "landmark".
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German authorities have justified wagering monopolies by saying that they assist safeguard consumers from the unfavorable effects of gambling.
But the ECJ stated this promotion code was irregular with Germany's this promotion code and "extensive advertising" of its gambling operations.
The court said: "The German guidelines on sporting bets make up a constraint on the yohaig code freedom to provide services and the liberty of facility.
"The public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the goal of combating the dangers of betting in a consistent and systematic manner."
Several foreign wagering business, including Britain's Happy Bet and Gibraltar's Digibet, brought a case versus German local authorities in Hesse and northern Schleswig-Holstein.
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The European Gaming and Betting Association welcomed the ruling.
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"this promotion code is a landmark judgment which will have a decisive effect on the much-needed reform in Germany," it stated in a statement.
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"Other member states have actually opened or are opening their markets. They show that customers can be better protected in a market that is both regulated and open to competitors," it stated.
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However, European Lotteries, a lobby group for nationwide lottery games in 40 countries, challenged whether the ruling would open up the German market.
"On the contrary," the group said in a declaration, "the court reminded Germany that it needs to manage more strictly the deal of dangerous types of betting such as gambling establishment video games and gaming devices.
"The court pointed once again to the greater risks connected with internet betting."
EGBA
European Lotteries
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European Court Rejects German Gambling Restrictions
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