European Court declines German gaming limitations

8 September 2010

German gambling restrictions breach European Union law, the EU's highest court has ruled.

The European Court of Justice (ECJ) said German laws that safeguard state monopolies for gambling were "unjustifiable".

The judgment could open the way for foreign wagering business to develop an existence in Germany.

A lobby group representing gambling companies, including PartyGaming and Bwin, called the judgement a "landmark".

German authorities have actually validated betting monopolies by saying that they help safeguard customers from the unfavorable results of betting.

But the yohaig code ECJ stated this was irregular with Germany's yohaig promotion code and "intensive advertising" of its gambling operations.

The court said: "the yohaig code German guidelines on sporting bets constitute a restriction on the flexibility to offer services and the liberty of establishment.

"the yohaig code general public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the goal of combating the dangers of gaming in a consistent and systematic way."

Several foreign wagering companies, including Britain's Happy Bet and Gibraltar's Digibet, brought a case versus German local authorities in Hesse and northern Schleswig-Holstein.

The European Gaming and Betting Association invited the ruling.

"this promotion code is a landmark judgment which will have a decisive influence on the much-needed reform in Germany," it stated in a statement.

"Other member states have opened or are opening their markets. They show that customers can be better safeguarded in a market that is both controlled and available to competition," it stated.

However, European Lotteries, a lobby group for nationwide lottery games in 40 nations, disputed whether the ruling would open up the German market.

"On the yohaig code contrary," the group said in a declaration, "the yohaig code court reminded Germany that it has to manage more strictly the bet9ja's welcome offer of harmful types of betting such as gambling establishment games and video gaming makers.

"The court pointed again to the higher threats related to web gaming."

EGBA

European Lotteries