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European Court declines German gambling limitations

8 September 2010
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German gambling restrictions breach European Union law, the EU's highest court has ruled.

The European Court of Justice (ECJ) stated German laws that safeguard state monopolies for betting were "unjustifiable".

The ruling might break the yohaig code ice for foreign wagering companies to develop a presence in .

A lobby group representing gambling firms, including PartyGaming and Bwin, called the judgement a "landmark".

German authorities have justified betting monopolies by stating that they help secure consumers from the negative impacts of gaming.

But the ECJ stated this was irregular with Germany's yohaig promotion code and "intensive marketing" of its betting operations.

The court said: "The German rules on sporting bets make up a restriction on the yohaig code flexibility to bet9ja's welcome offer services and the flexibility of establishment.
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"The general public monopoly of the organisation of sporting bets and lottos in Germany does not pursue the goal of combating the threats of gaming in a constant and organized manner."

Several foreign wagering companies, consisting of Britain's Happy Bet and Gibraltar's Digibet, brought a case against German local authorities in Hesse and northern Schleswig-Holstein.
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The European Gaming and Betting Association invited the ruling.
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"This is a landmark judgment which will have a definitive impact on the much-needed reform in Germany," it stated in a statement.

"Other member states have actually opened or are opening their markets. They reveal that consumers can be better protected in a market that is both regulated and open to competitors," it stated.
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However, European Lotteries, a lobby group for national lottos in 40 countries, disputed whether the judgment would open the German market.

"On the yohaig code contrary," the group stated in a statement, "the court reminded Germany that it needs to control more strictly the deal of harmful types of gambling such as gambling establishment video games and gaming makers.
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"The court pointed again to the higher dangers associated with web gaming."
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EGBA

European Lotteries
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