Germany Liberalises Sports Betting Market: Still Banning Online Poker Games

15 Prime Ministers in Germany overwhelmingly approved a measure that will liberalise the gaming market in that nation.  Most advantageous to betting shop businesses will be the concession fee reduced from 17 to 5 percent. 

Still, Germany will not concede when it comes to restricting licensed operators to 20 while continuing to ban online poker and casino games. 

JAXX SE, a financial holding company with holdings in international companies in the gaming industry, believes the German restrictions will not fly with the European Commission. 

A statement from the company read: 

As became apparent on the fringes of the conference, the agreement is still subject to the reservations of individual states which expressed their misgivings about its compatibility with European law. The aspects outstanding are to be clarified by the next conference, which will take place in mid-December and at which the State Treaty on gaming is to be signed.

JAXX Management Board spokesman Mathias Dahms commented:

'The resolution by the 15 Prime Ministers is an initial step towards introducing a market-driven gaming system in Germany. It just doesn't go far enough. And it will not stand up to scrutiny under European and constitutional law. The ban on casino and poker games will push more people towards the black market. Using the addiction prevention argument to justify the lottery monopoly will lead to a blanket ban on lottery advertising and consequently cause the collapse of German lottery companies. The main sticking points that the EU Commission severely criticised in its detailed statement of position were not addressed. We therefore expect to see the EU Commission launch fresh infringement proceedings.

We stand by our view that the law already passed by Schleswig-Holstein is an exemplary, market-driven model that is compatible with European law. The bridge across which Prime Minister Beck hopes to entice Schleswig-Holstein's Prime Minister Peter-Harry Carstensen would come crashing down after just a few steps.'

Germany is one of a handful of EU nations that has imposed prohibition on Internet gambling over the years.  Critics believe this is a means of protecting the country’s own gambling monopolies. 

A series of appeals brought by Internet gambling companies such as bwin.party Digital Entertainment Plc were dealt a blow late last month when Germany’s Federal Court of Justice upheld a ban that prohibits private-sector companies from operating online gambling websites.

- Aaron Goldstein, Gambling911.com