Legal challenge: 888 Holdings persists in the battle for the German market
In March, 888 Holdings, a gambling company, was considering pulling out of Germany's online gaming market. The Federal Administrative Court had prevented one of their subsidiaries from selling games of chance over the internet. The company has since appealed to the Federal Constitutional Court.
In October 2017, the Federal Administrative Court reversed a lower court's decision, confirming the ban on online sale of games of chance. The case revolved around a subsidiary of 888 Holdings, which sold internet-based casino games like roulette, slot machines, and scratch cards in Baden-Württemberg. In their 2017 annual report, 888 expressed their "deep disappointment" with this decision and hinted at potentially leaving Germany's gaming market.
However, 888 has since decided to fight back. They filed a constitutional complaint in Karlsruhe, aiming to overturn the administrative decision. 888 Holdings thinks its fundamental rights are being infringed and points to overriding EU law, which allows for the provision of legal services across national borders.
The company, which offers casino, poker, and sports betting, is licensed in Gibraltar and the UK, among other countries, and as a result, can operate in Germany. They believe the existing ban on online sales of certain games of chance in Germany is unlawful. Though it's uncertain if this view will be shared by the judges in Karlsruhe, considering that constitutional complaints rarely succeed (about 2% have succeeded), and given that the Federal Administrative Court had already addressed the issue in detail in their ruling and rejected 888's stance.
The judges in Leipzig quashed concerns related to EU law and referred to relevant precedents before the European Court of Justice. They stated that restricting the freedom to provide services in the gambling sector is justifiable if it's in line with public welfare objectives, like player protection. And since internet gambling carries specific risks, a corresponding ban would be legally defensible. Thus, it's improbable that the Constitutional Court would contradict their Leipzig colleagues on this matter.
The exact timetable for when the Federal Constitutional Court will look into the complaint and whether 888 will stay in Germany until then is uncertain. Their online gaming offers are still accessible.
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Source: www.onlinecasinosdeutschland.com
