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European Court rejects German gaming constraints

8 September 2010

German gaming restrictions Union law, the EU's greatest court has actually ruled.
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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 establish an existence in Germany.

A lobby group representing betting companies, consisting of PartyGaming and Bwin, called the judgement a "landmark".
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German authorities have justified betting monopolies by stating that they assist protect customers from the unfavorable effects of gambling.

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

The court stated: "The German guidelines on sporting bets make up a constraint on the liberty to provide services and the liberty of establishment.
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"The public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the goal of combating the threats of gaming in a constant and systematic manner."
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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 judgment.
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"this promotion code is a landmark judgment which will have a decisive impact on the much-needed reform in Germany," it said in a statement.

"Other member states have actually opened or are opening their markets. They show that consumers can be better protected in a market that is both managed and available to competition," it said.

However, European Lotteries, a lobby group for national lottery games in 40 nations, challenged whether the judgment would open up the German market.
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"On the contrary," the group said in a statement, "the court advised Germany that it needs to manage more strictly the deal of harmful kinds of gambling such as casino games and gaming makers.
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"The court pointed once again to the higher threats related to web gaming."

EGBA

European Lotteries