EU ruling puts end to German government gaming monopoly

The European Court of Justice put gambling in the spotlight yet again this week after a critical ruling concerning Germany's government gaming monopoly. The latest ruling said that the current protectionist sector was 'unjustifiable' in its present form and called for a change in the way such services are to be operated in the immediate future. The ruling arrives in the wake of other significant changes in European gambling legislation. France and Italy have both been restricting the organisation of their respective national industries and have replaced monopolies with licensed regulation

The Luxembourg based court announced that current laws have failed to regulated games of chance in an adequately "consistent and systematic manner". "In such circumstance", it added, "the preventive objective of that monopoly can no longer be pursued, so that the monopoly ceases to be justifiable." Meanwhile the secretary general of the European Gaming and Betting Association, Sigrid Ligné, welcomed the EU's decision. Ligné called the decision a "landmark ruling" which looks set to reform the German system. "Other Member States have opened or are opening their markets and moving away from a monopoly regime".

The new law will see Germany move to a multi-operator licensing system and puts an end to the present structure in which on 16 federal states are permitted to offer services. Such a decisive ruling will certainly be welcomed by operators and fans alike. It remains to be seen how such liberties look set to reform the Germany gaming industry as a whole as casinos rush to take advantage of a potentially lucrative and exciting online market.