German Online Gambling Ban Unconstitutional

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Published: Friday, January 04, 2008 https://www.gowanbo.cc 博彩518

Top lawyers confirm that new banning accord contravenes both the German constitution and European law.

With criticism and threats of international litigation mounting, the 16 German states remained under siege today for implementing a New Years Day accord banning online gambling and introducing Internet freedom-sensitive rules.

The boss of UK betting company MyLotto24 - a subsidiary of German giant Tipp24 - Carsten Frein echoed the parent company view, commenting: “We consider the state treaty on gambling as clearly illegal and will take legal action if necessary.

"Reports by notable constitutional lawyers such as Professor Bodo Pieroth or Professor Hermes confirm that the treaty contravenes the German constitution and European law. The EU and the German Monopolies Commission have also taken up a clear stance in this sense.”

Frein said that there would be no impact on the UK side of the business, but that in Germany, the company is restricted in its “marketing communications” until a resolution is reached at court level.

Operators Bwin, Fluxx and Tipp24 have all criticised the developments.

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Germany Accused Of Break With EU Principles

Wednesday, January 16, 2008 mgowanbo.cc

EGBA kicks off 2008 with a formal complaint on protectionist German ban

Just two weeks into 2008, and fourteen days since the German ban on online gambling was implemented , Europe's Internet gambling industry has served notice on the Germans that it will contest protectionist bans and has lodged an official complaint with the European Commission.

The complaint centres on the European Union requirement that member nations permit the free movement of goods and services between member nations. On January 1 the 16 German states implemented the ban, which forbids online gambling with the exception of horse racing.

"The European Gaming and Betting Association (EGBA) calls on the European Commission to take swift action against the German Interstate Treaty on gaming," the lobby group said in a statement.

EGBA asserts that the ban "...is in direct contravention of European Union law."

"The German Interstate Treaty is incompatible with EU law, and its adoption has left us with no other choice but to make a formal complaint to the European Commission," said EGBA secretary general Sigrid Ligne. "We urge the Commission now to fast track our complaint and launch infringement proceedings against Germany," she said.

Charlie McCreevy, the EU Internal Market Commissioner responsible for compliance issues, has been diligent in pursuing member states that do not adhere to the principles of the EU Treaty allowing free movement of goods and services, and has said that he is prepared to take non-compliant nations before the European Court of Justice if necessary.

McCreevy has already launched legal action against Germany over the then proposed treaty last year - before it came into force.

"The Commission does not believe this piece of legislation is in line with Community law," his spokesman Oliver Drewes said. "We now have to decide in the near future if we take this legal action to the next step."

Reuters news service reports that European Commission officials are due to decide in coming days whether to push ahead with legal actions in the gambling sector against several EU states. If Brussels were to push ahead against Germany, it would be in the form of a final warning before the country is taken to the European Court of Justice, which has powers to fine and force the country to change its laws.

EGBA is an association of major European gaming and betting operators, including Bet-at-home.com, bwin, Digibet, Carmen Media Group, Expekt, Interwetten, PartyGaming and Unibet.

The lobby group said the Germany treaty makes the granting of licenses "completely discretionary," places an "unjustified and inconsistent prohibition of online gaming and betting," and "strict advertising and sponsoring prohibitions."

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EC To Move On German Online Gambling Ban

Thursday, January 24, 2008 mgowanbo.cc

It hasn't taken long for Charlie McCreevy to react to January 1st ban by 16 German States

The European Commission is set to step up legal action against Germany next week for thwarting foreign competition in the country's gaming markets, the Reuters news agency reports, quoting an unnamed source who said: "The decision is expected to be adopted by the Commission next Thursday."

After signing a protectionist accord to ban online gambling in Germany to shield state monopolies from competition from companies in other EU member nations, the 16 German states instituted their controversial ban on online gambling on January 1st. The EC had previously made known its opinion that such a course would conflict with the principles of free movement of goods and services between EU member countries.

Major online gambling companies both within and outside Germany protested the ban and urged the European Commission to take action.

A new German law exempted horse racing.

The Commission is expected to open a new legal action with a letter of formal notice against Germany over the new law, possibly warning that the matter could go to the European Court of Justice for enforcement. EU Internal Market Commissioner Charlie McCreevy wants to crack down on hurdles to cross-border competition in services, a core part of the 27-country European Union's single market.

McCreevy started a legal action against Germany last year over its gaming laws.

The European Gaming and Betting Association said the German ban directly contravened EU law on the free movement of services and urged the Commission to take swift action.

McCreevy has previously launched proceedings against about 10 EU countries for stifling competition in their gaming or lottery sectors. He has drawn support from several rulings by the European Court of Justice, the bloc's top court.

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E.C. Renews Warnings To Swede's & Germans

Friday, February 01, 2008 mgowanbo.cc

January 1st German ban and Sweden's poker at the centre of latest warnings

Despite reports in the German press earlier today (Thursday) that the EC was considering a deal on its German problems, the enforcement arm of the European Union has issued renewed warnings to the German and Swedish authorities over their monopolistic gambling restrictions.

In doing so, the Commission is tacitly giving its support to the litigation being pressed by several major gambling companies in other EU countries who are being denied access to Swedish and German markets, reports the Bloomberg business news service.

At the centre of the latest EC warning is Germany's ban on online gambling imposed on January 1st, and the protectionist nature of the Swedish government's Svenske Spel monopoly on Internet poker. The new initiative was confirmed by EC officials.

Germany and Sweden are just two of the 10 members of the 27-nation EU that have been the subject of litigation or threats from the Commission over gaming laws in the past two years.  The Commission has opened a series of legal challenges in response to complaints by betting companies and industry groups such as the European Gaming and Betting Association, representing Bwin, Party Gaming and other major Internet gambling operators.

The Commission's power to enforce EU business rules is exercised through the European Court of Justice in Luxembourg, which can order governments to change their laws and fine countries that ignore its judgments, Bloomberg points out.

The EU court made two landmark rulings against Italian state monopolistic gaming restrictions last year. Judges in March struck down the use of criminal laws to hinder foreign companies including Stanley Leisure Plc of the U.K., and in September declared the country's licensing system illegal.

Shortly thereafter the Italians followed the licensing and regulation route rather than monopolising the pastime.

The Reuters news service reported on the new EC move in more detail, revealing that EU Internal Market Commissioner Charlie McCreevy has asked Germany for information to assess whether the January 1st ban was in line with EU rules on the free movement of services.

"Germany has two months in which to respond. The Commission hopes that the answers it receives will lead to an early and satisfactory resolution of the matter," the Commission said in a statement.

In particular, the EU executive is looking at the treaty's total prohibition of games of chance on the Internet, particularly sports betting, advertising restrictions on television, on the Internet or on jerseys or billboards, and the ban on financial institutions processing bet payments.

"However, it should be noted that in Germany horse race betting on the Internet is not prohibited and slot machines have been widely expanded. Moreover, advertising of games of chance by mail, in the press and on radio is still permitted," the Commission said.

Reuters reports that in its Swedish action, the Commission is verifying whether all national measures relating to poker games and tournaments are compatible with EU laws on the free movement of services. The Stockholm government also has two months to respond.

The Commission refers to European Court of Justice rulings which say EU states can introduce restrictions only if they are necessary, proportionate and non-discriminatory.

McCreevy has criticised states as hypocritical for protecting money-spinning national monopolies that actively promote betting while banning rivals on the grounds that consumers needed protecting.

The new German treaty replaces existing legislation that was already the subject of legal action from Brussels.

"The new [German] treaty introduces an even more restrictive regime by banning private online and 'bricks and mortar' sports betting operators and by imposing further discriminatory, disproportionate and inconsistent restrictions which leave the sports betting markets in the control of the German state lotteries," a spokesman for private gaming firm Stanleybet International said.

"The Swedish case concerns the introduction of online poker by the Swedish state-controlled gambling operator, Svenska Spel. This is certainly a discriminatory measure because Sweden maintains a very strict regime banning all other online operators," Stanleybet said.

The legal actions are part of a three-stage process that can end in the European Court of Justice, which has powers to fine EU states and force them to change their laws.

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More Pressure For The Germans

Friday, February 01, 2008 mgowanbo.cc

Schleswig court believes EU rules are being violated by January 1st ban

The pressure continued to mount of the German authorities this week as the European Union and major gambling companies in other EU states condemned the protectionist online gambling ban introduced on January 1st by the EU member nation.

The Verwaltungsgericht (Administrative Court) of Schleswig - like the EU Commission - has come out with a statement in which it voices a concern that EU laws are being violated and has decided to refer questions relating to European law issues in the context of the new sports betting monopoly to the European Court of Justice.

Lawyer Dr. Wulf Hambach, who is involved in the case, commented: "The referral to the ECJ is a consistent and correct decision by the VG of Schleswig, and is definitely in our client's best interests."

The hearing in Schleswig pertained to the law suit filed by an online provider of sports bets based in Gibraltar who - represented by the Hambach & Hambach Law firm - is looking for the acknowledgement of his European license for the German Federal State of Schleswig-Holstein as well, as he can invoke the European freedom to provide services.

According to the European Court of Justice, the freedom to provide services also applies for offers provided on the gambling market. However, restrictions to this freedom are possible, provided they are aimed at pursuing general interest objectives and provided the measures taken are suitable and proportionate.

In defending its actions, the Federal State of Schleswig-Holstein invoked the objectives stipulated in the State Treaty on Gambling, i.e. the combat of gambling addiction and the protection of minors.

The private sports betting company argued that the State Treaty on Gambling above all is intended to safeguard the Federal States' fiscal interests, and thus cannot create a consistent and systematic regulation. The area of slot machines in particular, which is especially relevant with regard to addiction issues, is not affected by the new regulation.

"Even when looking at the area of sports betting in isolation, the regulation lacks consistence, as (Internet) horse race betting continues to be liberalised under German Federal legislation", the argument continued. And according to a current survey by the Deutsche Hauptstelle für Suchtfragen (German Institution for Addiction Issues, Jahrbuch Sucht 2008), the addiction danger of lotteries is 0.0%.

Lawyer Ms. Münstermann stated that "a monopoly can hardly be justified by reasons of player protection if the danger in the monopolised areas is close to zero, and if at the same time gambling offers which actually do present dangers are being liberalised."

The VG of Schleswig referral asks the European Court of Justice whether consistent and systematic restrictions of the sports betting market are possible, when areas which are relevant with regard to addiction are not included in the scope of application - as is the case with the State Treaty on Gambling. The statement by the VG of Schleswig draws attention to key areas of concern:

"The Chamber has expressed legal concerns as to whether the objective of preventing gambling addiction and protecting minors - on which the State Treaty between the Federal States is based - may lawfully exclude private providers from the area of lotteries and sports bets only. Other forms of gambling, for instance slot machines, which are regulated by Federal statutes, are not subject to such restrictions."

The Schleswig court's views echo statements yesterday from European Commission officials, who said in a statement: "....it should be noted that in Germany horse race betting on the Internet is not prohibited and slot machines have been widely expanded. Moreover, advertising of games of chance by mail, in the press and on radio is still permitted.

"The European Court of Justice has previously stated that any restrictions which seek to protect general interest objectives, such as the protection of consumers, must be "consistent and systematic" in how they seek to limit activities.

"A member State cannot invoke the need to restrict its citizens' access to these services if at the same time it encourages them to participate in State games of chance."

Dr Hambach describes the VG Schleswig referral as a body blow to the State Treaty on Gambling, and predicts that it will not only occupy the European Commission in infringement procedures, but also the ECJ due to the referral by national courts.

The Swedish online gambling group Unibet weighed in with a statement based on the news yesterday that there is renewed EC activity against Germany and Sweden on monopolistic online gambling policies.

The company's CEO Petter Nylander, who has seen more than his fair share of government interference in business in his recent brush with the French, commented: "We welcome this important action from the European Commission. It is a big step forward for Unibet and the whole gambling sector towards a modern, regulated gambling market. Unibet, through dialogue with the Swedish government, wants to achieve a responsible, modern, regulated gambling industry in Sweden."

The European Gaming and Betting Association has also applauded the revitalised EC action, with general secretary Sigrid Ligne saying: "By commencing these broad proceedings only 30 days after the [German] treaty entered into force, the Commission shows its determination to fight restrictions and in particular prohibitions, which are not backed by genuine consumer protection or public order interests.

"This decision is an important development for EU-licensed operators as it confirms the support of the Commission to guarantee our members' right to a fair market access both for sports betting and poker services.

“This decisive action against the German Interstate Treaty and Swedish poker monopoly sends a clear message to all EU countries maintaining or instigating antiquated protectionist gaming regulations. We applaud the commencement of infringement procedures and encourage the Commission to extend these proceedings against other countries that are also contravening EU law," Ligne added.