THE DIE IS CAST IN GERMANY

4 January 2008

German states clamp down on Internet gambling


As reported in InfoPowa bulletins earlier this week, the German states have literally cast the die by imposing a protectionist accord to halt online gambling in the country. The move is sure to have serious repercussions from major international gambling groups who have threatened to litigate, and the European Commission which has already indicated that the ban is contrary to EU treaty principles on the free passage of services and trade between member nations.

All 16 of Germany’s states have ratified the accord which, as of 1 January, prohibits foreign remote gambling operators from offering their services to German customers. Restrictions have also been placed on the advertising of gambling services in Germany.

The new online gambling laws will be valid until 2011.

Internet censorship sensitivities are also trampled by the accord, which authorises German states to require Internet service providers to block gaming websites or websites that promote gambling. One element of the law clones America’s controversial Unlawful Internet Gambling Enforcement Act (UIGEA) in that financial institutions may be ordered to stop money transfers related to online gambling transactions.

Last year, the European Commission called German plans to totally ban Internet gambling disproportionate and urged the states involved to reconsider the new law. The way is now open for more pressure from the European Commission, which is responsible for compliance, and this could ultimately see Germany hauled before the European Court of Justice.

Germany's defence of its move against Internet gambling services is based on its claimed right to protect the moral and financial welfare its citizens, but as in other European nations with protectionist bans, this rings hollow as long as state gambling monopolies remain active and deliver revenues to the government.

Online Casino News courtesy of InfoPowa