Accordig to the Financial Times and EGR Online, the ECJ declared in its ruling, that the German gambling monopoly used unethical ways to recruit more and more customers, not making any effort to prevent gambling addiction.
The German State Gambling Treaty basically limits and prohibits all organisation of gambling on the internet. In effect since 2008, the treaty will expire on 1st January 2012. Last year, Schleswig-Holstein, one of the 16 states attacked the treaty after having rejected Gibraltar-based Carmen Media Group’s effort to offer online betting, and declared the need of an inter-state licensing system.
Yesterday, the ECJ declared that the “preventive objective” of the German monopoly system (preventing gambling addiction) “ceases to be justifiable”, because the monopolies were running aggressive advertising campaigns in order to maximize profits, not caring about the aim of the treaty:
“The public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the objective of combating the dangers of gambling in a consistent and systematic manner.”
“Germany didn’t pass the hypocrisy test,” said Dirk Uwer from the Hengeler Mueller law firm, advising gambling companies.
In a statement, however, the court re-stated the 16 states’ right to create public monopolies, saying that “such a monopoly is likely to overcome the risks connected with the gaming industry more effectively than a system under which private operators are authorised to organise bets subject to compliance with the relevant legislation.”
The monopolies will have to comply with the legislation and reduce the amount of gambling advertisements.
The German State Gambling Treaty basically limits and prohibits all organisation of gambling on the internet. In effect since 2008, the treaty will expire on 1st January 2012. Last year, Schleswig-Holstein, one of the 16 states attacked the treaty after having rejected Gibraltar-based Carmen Media Group’s effort to offer online betting, and declared the need of an inter-state licensing system.
Yesterday, the ECJ declared that the “preventive objective” of the German monopoly system (preventing gambling addiction) “ceases to be justifiable”, because the monopolies were running aggressive advertising campaigns in order to maximize profits, not caring about the aim of the treaty:
“The public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the objective of combating the dangers of gambling in a consistent and systematic manner.”
“Germany didn’t pass the hypocrisy test,” said Dirk Uwer from the Hengeler Mueller law firm, advising gambling companies.
In a statement, however, the court re-stated the 16 states’ right to create public monopolies, saying that “such a monopoly is likely to overcome the risks connected with the gaming industry more effectively than a system under which private operators are authorised to organise bets subject to compliance with the relevant legislation.”
The monopolies will have to comply with the legislation and reduce the amount of gambling advertisements.
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