European Court rejects German gaming constraints
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8 September 2010
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German betting constraints breach European Union law, the EU's greatest court has actually ruled.
The European Court of Justice (ECJ) stated German laws that safeguard state monopolies for gambling were "unjustifiable".
The judgment might break the ice for foreign wagering business to establish an existence in Germany.
A lobby group representing gambling firms, consisting of PartyGaming and Bwin, called the judgement a "landmark".
German authorities have validated wagering monopolies by stating that they help safeguard customers from the unfavorable effects of gaming.
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But the ECJ said this promotion code was inconsistent with Germany's promo and "intensive marketing" of its gaming operations.
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the yohaig code court stated: "The German rules on sporting bets constitute a limitation on the flexibility to provide services and the liberty of establishment.
"The public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the yohaig code goal of combating the risks of betting in a consistent and systematic way."
Several foreign betting companies, consisting of 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 welcomed the ruling.
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"this promotion code is a landmark ruling which will have a definitive 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 safeguarded in a market that is both regulated and available to competition," it said.
However, European Lotteries, a lobby group for nationwide lotteries in 40 countries, contested whether the ruling would open the German market.
"On the contrary," the group stated in a declaration, "the court advised Germany that it has to control more strictly the deal of harmful forms of such as casino video games and gaming machines.
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"The court pointed once again to the greater threats associated with web betting."
EGBA
European Lotteries
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European Court Rejects German Gambling Restrictions
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