European Court rejects German gambling constraints
8 September 2010
German betting limitations breach European Union law, the EU's highest court has actually ruled.
The European Court of Justice (ECJ) said German laws that protect state monopolies for gambling were "unjustifiable".
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The ruling could break the ice for foreign wagering companies to develop a presence in Germany.
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A lobby group representing betting companies, including PartyGaming and Bwin, called the judgement a "landmark".
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German authorities have actually validated wagering monopolies by saying that they assist safeguard consumers from the negative impacts of gambling.
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But the ECJ said this was irregular with Germany's bet9ja promotion code yohaig and "extensive marketing" of its gaming operations.
The court stated: "The German guidelines on sporting bets make up a limitation on the freedom to offer services and the freedom of facility.
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"The general public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the yohaig code goal of combating the risks of gambling in a consistent and systematic way."
Several foreign betting companies, including Britain's Happy Bet and Gibraltar's Digibet, brought a case versus German local authorities in Hesse and northern Schleswig-Holstein.
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The European Gaming and Betting Association invited the judgment.
"This is a landmark judgment which will have a definitive influence on the much-needed reform in Germany," it said in a statement.
"Other member states have actually opened or are opening their markets. They reveal that customers can be better safeguarded in a market that is both regulated and open up to competition," it stated.
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However, European Lotteries, a lobby group for nationwide lottery games in 40 nations, disputed whether the judgment would open up the German market.
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"On the contrary," the group stated in a declaration, "the court reminded that it needs to manage more strictly the offer of hazardous types of betting such as gambling establishment games and gaming machines.
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"The court pointed once again to the yohaig code greater risks connected with web gaming."
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EGBA
European Lotteries
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European Court Rejects German Gambling Restrictions
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