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European Court declines German gaming limitations

8 September 2010

German betting limitations breach European Union law, the EU's highest court has ruled.

the yohaig code European Court of Justice (ECJ) stated German laws that protect state monopolies for gambling were "unjustifiable".
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The judgment might break the ice for foreign wagering companies to develop a presence in Germany.
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A lobby group representing gaming firms, consisting of PartyGaming and Bwin, called the judgement a "landmark".
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German authorities have actually validated wagering monopolies by stating that they help safeguard consumers from the results of gambling.

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

The court stated: "The German guidelines on sporting bets constitute a limitation on the liberty to provide services and the flexibility of establishment.
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"The general public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the goal of combating the dangers of gambling in a constant and organized manner."
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Several foreign wagering business, including Britain's Happy Bet and Gibraltar's Digibet, brought a case versus German local authorities in Hesse and northern Schleswig-Holstein.

the yohaig code European Gaming and Betting Association welcomed the ruling.
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"This is a landmark ruling which will have a decisive effect on the much-needed reform in Germany," it said in a statement.

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

However, European Lotteries, a lobby group for national lottos in 40 countries, contested whether the judgment would open up the German market.

"On the contrary," the group stated in a declaration, "the yohaig code court reminded Germany that it needs to control more strictly the bet9ja's welcome offer of dangerous kinds of betting such as gambling establishment video games and video gaming devices.

"The court pointed again to the greater threats associated with internet betting."

EGBA

European Lotteries