New gambling contract for Germany

Good news for private sports betting companies: the German sports betting market is to be opened to private broadcasters. So finally sports betting on soccer betting are allowed.

The current gambling treaty expires in the end of 2011. The EU has demanded a inspection of Germany (see the section News below). From 2012, seven licenses will go to private sports betting companies nationwide. In return, they have to give out 16.6% of the stake to the government. For this then, the Football League Clubs will have the permission to advertise the bookmakers on their jerseys. Even advertising for sports betting in the Football League will be allowed in the stadiums’ perimeter.

However, live betting sports in this field are not given away freely. To learn what a live bet is, visit our Section Betting ABC. This rule was run at first as an experiment and after 5 years there will be a possible addiction to the test.

Under this new arrangement, the Federal Republic complies with the call for the renewal of the State Treaty on gaming. The currently valid Betting Monopoly, which is limiting exactly the free movement of services in the EU, applies to the European judges as well.

German sports betting dispute solved in EU Court

The European Court of Justice (ECJ) declared the German monopoly on gambling inadmissible, and with that tilted the government’s sought gambling monopoly.

Within the framework and in the context of the organization of sporting bets and lotteries in Germany, the established state’s monopoly and the objective of combating the dangers associated with gambling is not tracked systematically and coherently.

The EU’s highest judges in Luxembourg say that the German regulation should not be applied, as they are a form of gambling, and sports betting is not – and I quote – “defined in a consistent and systematic manner”. This is a form of violation of the right of establishment and freedom to provide services within the EU.

The EU’s highest judge made it clear, though, that an European Union country should in principle restrict the free movement of services and the freedom of establishment. This was, for example, in the case of the fight against gambling addiction, but German courts had “reason to conclude that the German rules do not limit games of chance in a consistent and systematic manner.” There are currently several lawsuits in German courts against the monopoly of private providers, which are still are pending.

The owner of the German monopolies is operating their campaigns in such a way as to make more profit. And for the others, those more dangerous games, such as slot machines, the monopoly does not apply. Under these circumstances, the preventive objective of that monopoly can no longer be pursued effectively, so that the monopoly can not be justified – as the judges in Luxembourg as well proclaimed.
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