European Court Rejects German Gambling Restrictions

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European Court declines German gambling restrictions
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8 September 2010


German gaming limitations 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 safeguard state monopolies for gaming were "unjustifiable".
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The ruling might break the ice for foreign betting business to establish a presence in Germany.


A lobby group representing gambling companies, including PartyGaming and Bwin, called the judgement a "landmark".
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German authorities have validated wagering monopolies by stating that they assist protect consumers from the negative effects of betting.
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But the ECJ said this was irregular with Germany's yohaig promotion code and "extensive marketing" of its gaming operations.


The court said: "The German rules on sporting bets constitute a constraint on the liberty to supply services and the freedom of establishment.


"The public monopoly of the organisation of sporting bets and in Germany does not pursue the goal of combating the dangers of gaming in a consistent and organized way."
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Several foreign betting 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 influence on the much-needed reform in Germany," it said in a declaration.
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"Other member states have actually opened or are opening their markets. They reveal that customers can be better secured in a market that is both managed and open to competition," it stated.
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However, European Lotteries, a lobby group for nationwide lotteries in 40 nations, contested whether the ruling would open up the German market.
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"On the contrary," the group said in a statement, "the yohaig code court advised Germany that it has to manage more strictly the deal of harmful forms of betting such as gambling establishment games and gaming devices.


"The court pointed again to the higher threats related to internet gambling."


EGBA


European Lotteries