GERMANY ACCUSED OF ONLINE GAMBLING BREAK WITH EU PRINCIPLES

18 January 2008

EGBA kicks off 2008 with a formal complaint on protectionist German ban


Just two weeks into 2008, and fourteen days since the German ban on online gambling was implemented (see previous InfoPowa reports), Europe's Internet gambling industry has served notice on the Germans that it will contest protectionist bans and has lodged an official complaint with the European Commission.

The complaint centres on the European Union requirement that member nations permit the free movement of goods and services between member nations. On January 1 the 16 German states implemented the ban, which forbids online gambling with the exception of horse racing.

"The European Gaming and Betting Association (EGBA) calls on the European Commission to take swift action against the German Interstate Treaty on gaming," the lobby group said in a statement.

EGBA asserts that the ban "...is in direct contravention of European Union law."

"The German Interstate Treaty is incompatible with EU law, and its adoption has left us with no other choice but to make a formal complaint to the European Commission," said EGBA secretary general Sigrid Ligne. "We urge the Commission now to fast track our complaint and launch infringement proceedings against Germany," she said.

Charlie McCreevy, the EU Internal Market Commissioner responsible for compliance issues, has been diligent in pursuing member states that do not adhere to the principles of the EU Treaty allowing free movement of goods and services, and has said that he is prepared to take non-compliant nations before the European Court of Justice if necessary.

McCreevy has already launched legal action against Germany over the then proposed treaty last year - before it came into force.

"The Commission does not believe this piece of legislation is in line with Community law," his spokesman Oliver Drewes said. "We now have to decide in the near future if we take this legal action to the next step."

Reuters news service reports that European Commission officials are due to decide in coming days whether to push ahead with legal actions in the gambling sector against several EU states. If Brussels were to push ahead against Germany, it would be in the form of a final warning before the country is taken to the European Court of Justice, which has powers to fine and force the country to change its laws.

EGBA is an association of major European gaming and betting operators, including Bet-at-home.com, bwin, Digibet, Carmen Media Group, Expekt, Interwetten, PartyGaming and Unibet.

The lobby group said the Germany treaty makes the granting of licenses "completely discretionary," places an "unjustified and inconsistent prohibition of online gaming and betting," and "strict advertising and sponsoring prohibitions."

Online Casino News courtesy of InfoPowa