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European Court declines German gaming constraints

8 September 2010

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

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

The could break the ice for foreign betting business to develop an existence in Germany.

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

German authorities have actually validated wagering monopolies by stating that they help safeguard consumers from the negative effects of gambling.

But the ECJ stated this was inconsistent with Germany's promo and "extensive advertising" of its gaming operations.

The court said: "The German rules on sporting bets make up a restriction 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 lottery games in Germany does not pursue the objective of combating the dangers of gambling in a consistent and methodical way."
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Several foreign betting business, including Britain's Happy Bet and Gibraltar's Digibet, brought a case against German local 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 is a landmark judgment which will have a decisive effect on the much-needed reform in Germany," it stated in a declaration.

"Other member states have actually opened or are opening their markets. They reveal that customers can be much better secured in a market that is both managed and open up to competition," it said.

However, European Lotteries, a lobby group for national lotteries in 40 countries, disputed whether the judgment would open up the German market.
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"On the contrary," the group said in a declaration, "the court reminded Germany that it needs to control more strictly the bet9ja's welcome offer of dangerous types of gambling such as gambling establishment video games and gaming makers.

"The court pointed again to the greater threats connected with web betting."
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EGBA

European Lotteries