European Court Rejects German Gambling Restrictions

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European Court rejects German constraints


8 September 2010


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


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


The ruling could break the ice for foreign wagering companies to establish an existence in Germany.
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A lobby group representing gambling firms, consisting of PartyGaming and Bwin, called the judgement a "landmark".
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German authorities have actually validated betting monopolies by saying that they help safeguard consumers from the negative impacts of gambling.


But the ECJ said this promotion code was inconsistent with Germany's promo and "intensive marketing" of its betting operations.


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


"The general public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the yohaig code objective of combating the risks of betting in a constant and methodical manner."
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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.
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The European Gaming and Betting Association welcomed the ruling.
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"this promotion code 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 actually opened or are opening their markets. They reveal that customers can be much better protected in a market that is both managed and open to competition," it said.
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However, European Lotteries, a lobby group for national lottos in 40 nations, disputed whether the ruling would open the yohaig code German market.


"On the contrary," the group stated in a declaration, "the court advised Germany that it needs to control more strictly the bet9ja's welcome offer of unsafe types of gambling such as casino games and video gaming devices.


"The court pointed again to the higher risks related to web gambling."


EGBA


European Lotteries
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