Germany does not adopt the market restrictive Interstate Gambling Treaty

On the 13th December 2006, the German Lander did not sign the Interstate Treaty which had been initially tabled and promoted as a possible option to comply with the Federal Constitutional Court ruling issued in March 2006 (See EBA News release of 29th march 2006).

In that landmark ruling, the Federal Constitutional Court declared that the German State Gambling Monopoly was unconstitutional. It highlighted its inconsistency, and in particular the fact that the market restrictions in place were not aimed at protecting the consumers or preventing gambling addiction, but rather aimed at enriching the States’ purse. It gave the German Authorities until December 2007 to achieve a comprehensive regulation of the gambling market in order to bring it into conformity, not only with the German Constitution but also with European Union (EU) law.

However, various interest groups (Media Associations, Sports Leagues, tax payers, private betting operations, etc.) and a great part of the legal community believe this Draft Treaty is not an attempt to realign the goals of the Monopoly with a genuine problem gambling prevention policy. On the contrary, this Treaty raises in fact new concerns and further illegal market restrictions.

The European Betting Association (EBA) welcomes the non-signing of the Treaty by the German Lander who now have an opportunity to reconsider how to organise the national gambling market in a truly sustainable and responsible way.

EBA urges the German Authorities to clear the current legal chaos by tabling as soon as possible a new and workable regulatory proposal. Such a proposal should recognise the fundamental rights accorded by the EU Treaty and settled European Court of Justice case law with respect to the freedom of EU licensed operators to establish themselves and to provide their services within the EU.

“In the meantime and in the context of this German legal vacuum, EU laws prevails and we therefore urge the German Authorities to suspend any attacks against fully licensed EU operators”, comments Didier Dewyn, Secretary General of EBA

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