German Federal States

Recent legal decision risks breaking up Germany's lottery monopoly.

Could the German lottery monopoly be deemed unlawful? What did the Administrative Court decide? What might be the outcomes of this verdict? Find out completely by reading this article!

SymClub
May 12, 2024
2 min read
Newsonlinecasinosgermany
According to court ruling, the state's monopoly is illegal. Image source:
According to court ruling, the state's monopoly is illegal. Image source:

Attention!

Limited offer

Learn more

Multiple individuals from the Federal Republic of Germany (82+ million populace) participate in the nation's weekly lottery, a game of chance with a history dating back over 250 years. The lottery contributes immensely to the country's revenue and supports a vast number of charitable associations. Nonetheless, the Munich Administrative Court recently declared that the current state of affairs contradicts the German constitution and European law. Is the national lottery monopoly soon set to expire?

Similar to many lotteries, the game involves a simple ticket with twelve number fields, numbered 1-49. Players outline six correct symbols across the fields and possibly win millions as a result. While the likelihood of winning is astronomically low, gamblers persist, hopeful. Nevertheless, millions participate daily in anticipation of their lucky numbers.

For many years, the state maintained a sole-use grant over lottery arrangements, which was blocked by other German states. However, the Munich Administrative Court's ruling now challenges this practice as inconsistent with EU law. Let's scrutinize the past leading up to this decision.

Tempted by the prospect of organizing her own lottery in 2010, a Bavarian woman sought permission to do so. Her application was ultimately dismissed by both the Free State of Bavaria and the government of Upper Palatinate, citing the absence of a licensing requirement as grounds. Undeterred, the woman took the matter to in court. The defendant government maintained that the monopoly on lottery games in Germany affirmatively prohibited her from arranging a lottery. The court then deemed appropriate to determine whether this state lottery monopoly complies with German and EU legislation.

Monopoly conflicts with freedom of services

The court examined significant legal nuances and determined that the German lottery monopoly violates the European freedom to provide services, stipulated as: "the legal restriction on the provision of services within the Union for the nationals of Member States who are established in a Member State other than that of the recipient of the service is prohibited, subject to the following provisions". The lawsuit's implications render the lottery monopoly constitutionally invalid.

The free contestants' advertising procedures of state lottery organizations are alleged to promote the charitable nature of the games. The Advertising Guidelines, § 5 no. 1 sentences 2 and 3, however, emphasize that advertising remains permissible so long as it centers around the charitable facet of the lottery. Contrarily, the plaintiff has provided many instances of alleged non-compliance. Verbalizing "jackpot advertisements" was prevalent within the monopoly and was prevalent across various social media, print, and out-of-home advertisements. Such practices were ostensibly made to recruit novice players.

The lawsuit's dismissal leaves the monopoly's fate in flux

Though the plaintiff's lobbying effort was unexpectedly dismissed, the state lottery monopoly's validity remains in limbo. The court argued that the therapies aimed at generating sympathy and a favorable image amounted to inadmissible advertising, specifically regarding the "jackpot advertisements". Entertaining advertising stimulates prospective bettors. Void of the litigant's financial security, the case ultimately lost, but the legality of the state's lottery monopoly remains in question.

Tags: #story #paraphrasing #lottery

Read also:

Source: www.onlinecasinosdeutschland.com

Attention!

Limited offer

Learn more