European Court Rejects German Gambling Restrictions
European Court rejects German gaming limitations
8 September 2010
German gaming constraints breach European Union law, the EU's highest court has actually ruled.
The European Court of Justice (ECJ) said German laws that secure state monopolies for gaming were "unjustifiable".
The judgment could open the method for foreign wagering companies to develop a presence in Germany.
A lobby group representing betting firms, including PartyGaming and Bwin, called the judgement a "landmark".
German authorities have justified wagering monopolies by stating that they assist safeguard consumers from the unfavorable impacts of gaming.
But the ECJ said this was inconsistent with Germany's promo and "extensive advertising" of its gaming operations.
The court stated: "The German rules on sporting bets make up a restriction 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 betting in a consistent and organized manner."
Several foreign betting business, 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 is a landmark judgment 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 customers can be better protected in a market that is both controlled and open up to competition," it stated.
However, European Lotteries, a lobby group for national lotteries in 40 nations, contested whether the judgment would open up the German market.