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European Court rejects German betting limitations
8 September 2010
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German gaming constraints breach European Union law, the EU's highest court has actually ruled.
The European Court of Justice (ECJ) stated German laws that protect state monopolies for betting were "unjustifiable".
The judgment might open the way for foreign wagering companies to develop a presence in Germany.
A lobby group representing gaming companies, including PartyGaming and Bwin, called the judgement a "landmark".
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German authorities have validated betting monopolies by saying that they assist safeguard customers from the negative results of gaming.
But the ECJ stated this promotion code was inconsistent with Germany's promo and "intensive advertising" of its gambling operations.
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The court stated: "The German guidelines on sporting bets make up a limitation on the freedom to offer services and the flexibility of establishment.
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"The public monopoly of the yohaig code organisation of sporting bets and lottery games in Germany does not pursue the objective of combating the risks of gambling in a consistent and methodical manner."
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 yohaig code European Gaming and Betting Association invited the judgment.
"this promotion code is a landmark ruling which will have a definitive effect on the much-needed reform in Germany," it said in a declaration.
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"Other member states have opened or are opening their . They reveal that consumers can be better safeguarded in a market that is both regulated and available to competitors," it stated.
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However, European Lotteries, a lobby group for nationwide lottos in 40 nations, challenged whether the ruling would open the German market.
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"On the contrary," the group stated in a declaration, "the court reminded Germany that it has to manage more strictly the deal of dangerous forms of betting such as gambling establishment video games and gaming devices.
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"The court pointed once again to the higher risks associated with web gambling."
EGBA
European Lotteries
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