Thursday

30th Nov 2023

EU court strikes down Germany's gambling monopoly

  • German gambling monopolies don't limit addiction, says the ECJ (Photo: Flickr.com)

In a landmark ruling that may "ruin" German state lotteries and bring in big gains for private betting companies, the EU's top court said that the current state monopoly on gambling is "unjustifiable" and in breach of EU law.

The European Court of Justice in Luxembourg said on Wednesday (8 September) that Germany had undermined its consumer-protection argument by letting state-run gambling companies engage in "intensive advertising campaigns" and by permitting a proliferation of automated gambling machines, which the court said were highly addictive.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"In such circumstances, the preventive objective of that monopoly can no longer be pursued, so that the monopoly ceases to be justifiable," the court said.

The top court also said Germany's national legislation on gambling is "contrary to the fundamental freedoms of the EU" and its provisions "cannot continue to apply during the time necessary to bring it into conformity with union law."

Under a bill adopted in 2008 and aimed at limiting gambling addiction, only state-run companies were allowed to offer lottery and betting services in Germany, bringing billions of euros to the state coffers.

Eight online gambling providers challenged this law in several regional courts, which in turn asked the ECJ whether the German system was legal.

The ECJ ruling was met with "surprise" on the part of the state lotteries, because the ECJ had already ruled that such monopolies in a number of other EU states are legal because they are aimed at limiting the social impact of gambling.

"It's a disaster ... If we don't get this thing fixed, our very existence is at stake," said Rolf Mueller, president of the sports federation of Hesse state, reports Deutsche Presse Agentur. Eighty per cent of the group's running costs are paid by the state lottery commission.

The other camp hailed the decision as a "landmark ruling" that "signals the end of the German online gaming ban", Sigrid Ligne, head of the European Gaming and Betting Association, said in a statement.

However, European Lotteries, a lobby group for national lotteries in 40 countries, disputed whether the ruling would open up the German market.

"On the contrary," the group said in a statement, "the court reminded Germany that it has to control more strictly the offer of dangerous forms of gambling such as casino games and gaming machines.

"The court pointed again to the higher risks associated with internet gambling."

Orban's sovereignty bill seen as fresh attack on rule of law

Hungary's new sovereignty law has been criticised by the opposition as 'another dark milestone' for the country's democratic values and the rule of law — and it could bring yet another clash between Budapest and Brussels.

Analysis

Why Spain's amnesty deal with Catalans is source of resentment

Spain's new amnesty law for Catalan separatists has sparked protests across the country, fueling concerns about the rule of law, judicial independence, and accountability. But why is the bill so problematic? And who opposes it?

Analysis

How Wilders' Dutch extremism goes way beyond Islamophobia

Without losing sight of his pervasive Islamophobia, it is essential to note Geert Wilders' far-right extremism extends to other issues that could drastically alter the nature of Dutch politics — and end its often constructive role in advancing EU policies.

Latest News

  1. EU offers Turkey upgrade, as Sweden nears Nato entry
  2. Russia loses seat on board of chemical weapons watchdog
  3. Finland's closure of Russia border likely violates asylum law
  4. The EU's 'no added sugars' fruit-juice label sleight-of-hand
  5. EU belittles Russia's Lavrov on way to Skopje talks
  6. Member states stall on EU ban on forced-labour products
  7. EU calls for increased fuel supplies into Gaza
  8. People-smuggling profits at historic high, EU concedes

Stakeholders' Highlights

  1. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  2. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  3. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?
  4. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  5. UNOPSFostering health system resilience in fragile and conflict-affected countries
  6. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.

Join EUobserver

Support quality EU news

Join us