European Court Rejects German Gambling Restrictions

European Court declines German gambling restrictions


8 September 2010


German gaming restrictions breach European Union law, the EU's greatest court has ruled.


The European Court of Justice (ECJ) stated German laws that secure state monopolies for betting were "unjustifiable".


The ruling could open the way for foreign wagering companies to establish a presence in Germany.


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


German authorities have actually justified wagering monopolies by stating that they help secure consumers from the negative impacts of gambling.


But the ECJ stated this was irregular with Germany's promo and "intensive advertising" of its betting operations.


The court stated: "The German guidelines on sporting bets make up a restriction on the flexibility to supply services and the flexibility of facility.


"The public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the objective of combating the threats of gaming in a consistent and methodical manner."


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 invited the ruling.


"This is a landmark ruling which will have a definitive 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 consumers can be better secured in a market that is both managed and available to competitors," it stated.


However, European Lotteries, a lobby group for nationwide lotteries in 40 countries, challenged whether the ruling would open up the German market.