MAJOR ONLINE COMPANIES READY TO FIGHT GERMAN STATES

4 January 2008

German moves being closely watched


The new year appears set to kick off in confrontational mood in Germany, where major online gambling companies are facing off with the 16 German states over plans to maintain state monopolies over gambling with an accord due to come into effect on January 1st (see previous InfoPowa report)

The accord will effectively ban private betting companies from operating in the country, a flagrant departure from EU treaty obligations requiring free movement of services.

Among those gearing up for litigation through the German law firm of Hambach and Hambach are BWIN Interactive Entertainment AG and Fluxx AG, according to a report in Die Welt newspaper quoting legal chief Dr. Wulf Hambach.

Hambach represents 20 of the world's biggest betting companies, according to the newspaper.

"The accord breaches EU law because it excludes foreign betting companies with EU licenses from the German market," Hambach said of the accord, which is widely seen as a protectionist move to secure lucrative betting revenues for state companies.

Die Welt goes further, reporting that law firm Redeker's Michael Winkelmueller as saying he expects to see legal action by all 3 000 betting companies active in Germany.

Germany's states have voted in favor of banning private sports betting companies until 2010, during which time they will develop a system by which private betting companies can obtain concessions.

Online Casino News courtesy of InfoPowa