European Court Rejects German Gambling Restrictions
European Court rejects German betting restrictions
8 September 2010
German gaming restrictions breach European Union law, the EU's highest court has ruled.
The European Court of Justice (ECJ) said German laws that protect state monopolies for betting were "unjustifiable".
The judgment could open the method for foreign betting business to establish an existence in Germany.
A lobby group representing gaming companies, consisting of PartyGaming and Bwin, called the judgement a "landmark".
German authorities have justified betting monopolies by saying that they assist safeguard customers from the unfavorable results of gaming.
But the ECJ said this was irregular with Germany's promo and "extensive advertising" of its gaming operations.
The court said: "The German rules on sporting bets make up a limitation on the liberty to offer services and the flexibility of facility.
"The general public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the objective of combating the threats of gambling in a consistent and systematic manner."
Several foreign wagering business, including 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 is a landmark ruling which will have a definitive impact on the much-needed reform in Germany," it stated in a declaration.
"Other member states have opened or are opening their markets. They show that consumers can be better safeguarded in a market that is both regulated and open to competitors," it said.
However, European Lotteries, a lobby group for national lottery games in 40 nations, challenged whether the ruling would open up the German market.
European Court rejects German betting restrictions
8 September 2010
German gaming restrictions breach European Union law, the EU's highest court has ruled.
The European Court of Justice (ECJ) said German laws that protect state monopolies for betting were "unjustifiable".
The judgment could open the method for foreign betting business to establish an existence in Germany.
A lobby group representing gaming companies, consisting of PartyGaming and Bwin, called the judgement a "landmark".
German authorities have justified betting monopolies by saying that they assist safeguard customers from the unfavorable results of gaming.
But the ECJ said this was irregular with Germany's promo and "extensive advertising" of its gaming operations.
The court said: "The German rules on sporting bets make up a limitation on the liberty to offer services and the flexibility of facility.
"The general public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the objective of combating the threats of gambling in a consistent and systematic manner."
Several foreign wagering business, including 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 is a landmark ruling which will have a definitive impact on the much-needed reform in Germany," it stated in a declaration.
"Other member states have opened or are opening their markets. They show that consumers can be better safeguarded in a market that is both regulated and open to competitors," it said.
However, European Lotteries, a lobby group for national lottery games in 40 nations, challenged whether the ruling would open up the German market.