Brussels reprimands Germany over gambling legislation once again.
The suggested reforms to the German gambling law have been received with limited enthusiasm in Brussels. The Süddeutsche Zeitung disclosed a confidential letter, shedding light on EU's competition organizations' harsh criticisms of the intended modifications to the law. These criticisms are aggravating to the minister presidents, as they planned to finally establish regulations in line with European law and put the matter to rest after years of adverse rulings by the European Court of Justice (ECJ).
In several EU countries, private enterprises are permitted to apply for licenses to run games of chance. If they satisfy the regulatory requirements, they are allowed to offer sports betting, lotteries, and casino games, frequently in conjunction with state-owned entities. Due to the European freedom to provide services, these companies can also provide their products in other EU nations. However, in Germany, gambling is a state monopoly, with the exception of gaming arcades featuring slot machines. This inconsistency between legal systems has been established multiple times by the ECJ. The ruling's insistence is evident: the German government must also allow the freedom to provide services in this area.
The latest significant reform in 2012 aimed to open the market to sports betting bookmakers. However, the numerical cap of 20 licenses did not comply with either German or European courts. In the end, not a single license was awarded, and the process was marred by both legal and administrative shortcomings.
It's worth questioning why there are so many betting shops in Germany. However, they function as intermediaries: The effective providers are stationed in other European countries. Nevertheless, these enterprises already pay additional taxes, just as if they held licenses. They also advertise on television and at sports clubs. Legally speaking, the government could potentially take action against these companies, but there's no enforcement in this area. It's likely that politicians are aware that it would be challenging to intervene against entirely legal enterprises after years of tacit acceptance. The recent uptick in tax revenue from sports betting could have also contributed to this situation.
The circumstances are very similar for online casinos. Generally, these do not hold German licenses, with the exception of a handful from a trial phase in Schleswig-Holstein. The reform proposals presented by the state premiers fail to address a "viable solution" for online casinos - the states refuse to issue any licenses and plan to take financial measures against the providers. The EU experts foresee "possible contradictions" for sports betting as well and perceive the one-year timeframe from application to license granting as unreasonably long.
Imagining fresh legal action against Germany by online casino providers is simple. The results would likely be similar: The Federal Republic is infringing upon the freedom to provide services. More imagination is required to decipher the motives of the federal state leaders. Wouldn't it be more sensible to issue licenses to online casinos based on strict criteria? These would then be subject to taxation and could contribute to the public good instead of bolstering Malta and Gibraltar's booming industries. Or are the countries attempting to safeguard physical casinos and government-owned companies such as Oddset? Regardless, they are hindering player protection with their approach. Players can continue to partake unhindered via the Internet and must rely on regulations from abroad. Unfortunately, German consumer protection, which is considered comparatively stringent, does not apply.
The Conference of Minister Presidents is expected to convene in Berlin in two weeks' time. The Interstate Gambling Treaty and the recent reproof from Brussels are likely to be back on the agenda. If the plans are not amended, the EU could initiate infringement proceedings against Germany as a final option.
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Source: www.onlinecasinosdeutschland.com
