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German Interstate Treaty: EGBA logdes complaint with European Commission
The European Gaming and Betting Association (EGBA) calls on the European Commission to take swift action against the German Interstate Treaty on gaming. The Treaty, which came into force on January 1st and introduces a ban for online gaming and betting (except for horse races) in Germany, is in direct contravention of European Union law. The provisions of the Treaty severely restrict the rights of EGBA’s members to provide services under Article 49 of the Treaty of Rome.
The German Interstate Treaty has come into force despite formal objections raised by the European Commission under its notification procedure (Directive 98/34/EC) that the Treaty transgressed EU law. Its adoption shall not only restrict the activities of EU operators but directly challenges the Commission’s clear position under the notification procedure itself.
Norbert Teufelberger, Chairman of the EGBA, commented: “Prohibition is not and has never been a solution, be it in our sector or other sectors. It is not a responsible approach and cannot be a substitute to an efficient gaming policy. Focusing on online gaming does not make sense when most recent peer reviewed studies show that although online and offline gaming has a different target audience, players’ behaviour is similar whether online or offline! Furthermore, in a regulated environment online gaming allows for higher transparency and traceability!”.Sigrid Ligné, Secretary General of the EGBA added: “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 EC. We urge the Commission now to fast track our complaint and launch infringement proceedings against Germany”. ENDS -
For further information or comment please contact:
Sigrid Ligné: +32 (0) 2 256 7527
The EGBA is an association of the leading European gaming and betting operators Bet-at-home.com, bwin, Digibet, Carmen Media Group, Expekt, Interwetten, PartyGaming and Unibet. EGBA is a Brussels-based nonprofit making association. It promotes the right of private gaming and betting operators that are regulated and licensed in one Member State to a fair market access throughout the European Union. www.egba.eu
Background information
The German Interstate Treaty (GST) imposes a number of restrictions on gaming and betting activities:
Discretionary licensing requirement for agencies: Section 19 GST in conjunction with Sections 4 to 7 GST lays down a licensing requirement for betting agencies that accept bets on behalf of betting operators. Pursuant to Section 4(2) GST, an agent does not have a legal claim to obtain such a licence even if he fulfils the (very stringent) requirements of the GST. In practice, granting of licences is thus completely discretionary.
Unjustified and inconsistent prohibition of online gaming and betting: Section 4(4) GST introduces a ban for online gaming and betting except for horse race betting which is regulated by the Laender. The Treaty prevents online gaming and betting operators established and licenced in other member states from offering their services to German customers.
Strict advertising and sponsoring prohibitions: Section 5(3) GST prohibits any form of advertising for public games of chance over TV, the Internet and any telecommunications equipment (mainly phone or fax). A specific provision in the second sentence of Section 21(2) GST prohibits tricot sponsoring and stadium advertising if the sports events are broadcasted on television or radio.
Financial and ISP Blockings: Section 9(1)(4) and (5) enables the gaming authorities of the German federal states to demand that Internet Service Providers block online gaming websites and to prohibit financial institutions from processing payments for and from online gaming prohibited by the Treaty. Such provisions are inefficient as demonstrated in other countries where they have proved to be easily circumvented while putting on ISP providers and financial institutions and gaming operators disproportionate and costly requirements.
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