Real Time Gaming Asia

Online betting licensing still stalled in Germany

Back in February, the Court of Justice of the EU ruled in favour of EU licensed bookmakers.

Even though the licensing process is a key part of the Interstate Treaty on Gambling there have been no online sports betting licenses issued as yet.

Germany.- After an amendment in the Interstate Treaty on German online gambling laws introduced in July of 2012, a nationwide licensing process for sports betting was made mandatory. In addition, Feb 4 the Court of Justice of the EU (CJEU) has ruled in favour of European Union licensed bookmakers as a result of the judgment rendered in case Ince (C-336/14).

The judgment points out that the various German states have not replaced the state monopoly on sports betting with a fair licensing system as specifically required by the EU law on free trade including e-commerce among member nations.

There was a nationwide tender in the European country for as many as 20 sports-betting licenses based on the “experimental clause” provided for in the Interstate Treaty. The German states argued that the reason for this clause is to evaluate the market for internet sports betting in Germany.

As a consequence, the E.U. Court of Justice concluded that the licensing regime including this clause has not remedied the incompatibility of German restrictions to online sports betting with EU law. The illegal state monopoly on online gambling on sports has persisted; therefore regulators are unable by law to restrict unauthorised operations of sports betting.