Fight German Monopolies
Gambling operators in Germany started the year by donning boxing gloves in preparation to fight German states over plans to maintain their state monopolies over most forms of gambling, including online poker, with an accord that came into effect January 1st.
The accord effectively bans private companies from operating any form of Web-based gambling or brokering of games in Germany until 2010. Germany claims that they will develop a system by which private betting companies can obtain concessions during that time.
This is in direct conflict with European Union treaty obligations requiring free movement of services for EU-based operators. And it is also contrary to efforts by the European Commission, headed by former Irish finance minister Charlie McCreevy (58), to open up markets in the 27 nation EU to free movement of trade and services.
By mid-December, all 16 German state legislatures voted to approve the new gambling laws designed to help them retain the lucrative gambling market for each state. The action was triggered when the Federal Constitutional Court ruled in 2006 that the former model was unconstitutional.
Eric Braum, a spokesman for the Hesse government which monitors the process, said in an interview a few days ago that at least 13 of Germany’s 16 states had submitted the ratification documents. “That’s the required majority and we expect to have all the rest coming in by New Year’’s Eve.”
LEGAL ACTION COMING
In addition to the wrath of the EC, the new rules, which expire at the end of 2011, have drawn criticism from Internet betting companies and lottery brokers like Bwin Interactive Entertainment AG, Fluxx AG and Tipp24 AG.
The German law firm of Hambach and Hambach is representing the aformentioned firms in legal action against the German states, according to a report in Die Welt newspaper quoting legal chief Dr. Wulf Hambach.
Hambach represents 20 of the world’s biggest betting companies, according to the newspaper.
“The accord breaches EU law because it excludes foreign betting companies with EU licenses from the German market,” Hambach said of the accord.
Die Welt goes further, reporting that law firm Redeker’s Michael Winkelmueller as saying he expects to see legal action by all 3,000 betting companies active in Germany.
Story thanks to pokerpages.com
