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European Court declines German gambling restrictions
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8 September 2010
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German gambling restrictions breach Union law, the EU's highest court has ruled.

the yohaig code European Court of Justice (ECJ) stated German laws that secure state monopolies for gambling were "unjustifiable".
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The judgment could open the way for foreign wagering business 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".

German authorities have actually justified betting monopolies by stating that they help protect customers from the negative effects of gambling.
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But the ECJ said this promotion code was irregular with Germany's promo and "extensive marketing" of its gambling operations.

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

"The general public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the goal of combating the dangers of betting in a consistent and methodical manner."

Several foreign wagering companies, including Britain's Happy Bet and Gibraltar's Digibet, brought a case versus German local authorities in Hesse and northern Schleswig-Holstein.

The European Gaming and Betting Association welcomed the ruling.

"This is a landmark ruling which will have a decisive effect on the much-needed reform in Germany," it stated in a statement.
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"Other member states have opened or are opening their markets. They reveal that customers can be much better protected in a market that is both regulated and open up to competitors," it said.

However, European Lotteries, a lobby group for nationwide lottery games in 40 nations, challenged whether the ruling would open the German market.

"On the contrary," the group stated in a statement, "the court advised Germany that it needs to control more strictly the deal of harmful forms of gambling such as casino video games and gaming makers.

"The court pointed once again to the higher risks associated with web gaming."

EGBA

European Lotteries