German Court says “Nein” to Private Online Gambling Operators

A long list of appeal cases aimed at challenging the legality of the German gaming monopoly and brought forth by private operators of internet sportsbooks and online casinos in Germany has suffered a setback. The Federal Court of Justice in Germany ruled that the ban, prohibiting private-sector companies from online gambling operations, will remain in place.

The court ruled that the ban is justified and needed to deal with various hazards caused by gambling that only a government monopoly is equipped to handle. The appeals came from a multitude of gambling operators including bwin.party Digital Entertainment Plc, which seems to be on the forefront of every major court battle, concerning the liberalization of German gambling laws.

Germany gambling news quotes Presiding Judge Joachim Bornkamm: “because of the greater dangers of the Internet, above all anonymity, lack of social control and accessibility at any time, this sales venue can be subject to stricter regulation.”

Bwin spokesperson had the following comments: ”The ban violates European rules and won’t last. A regulated market opening is the only way to combat the black market in Germany and to comply with EU requirements.”

Recently one German state, Schleswig-Holstein, passed its own set of gambling laws, creating a less restrictive gambling environment. Other states are expected to follow the example. Read more in our (New Law Permits Online Gambling in One German State ) article.

According to some sources, Bwin is reportedly contemplating its options about whether to file a constitutional complaint on the matter. However any ruling on that cannot come before the end of the year, around the same time that the 2008 German State Treaty will become void on December 31, 2011.