Germany’s online gambling ban is in question after one of the 16 states in the country recently stated their opposition to the current legislation.
A controversial treaty
The German Interstate Treaty on Gambling resulted in a ban of online gambling in the nation except for horse racing. The treaty was enacted on January 1, 2008. The legislation has been controversial on many fronts. It is viewed as a monopoly that is in violation of European law. A major European betting association, EGBA, has indicated that Germany’s policy is not in accord with Article 49 of the Treaty of Rome. According to this treaty, the rights of its members to allow access to online gambling are being denied. Two of these companies, Bwin and Unibet, have been vocal in their desire to see German’s current legislation be reversed.
All states must agree on law
The current legislation is set to expire on January 1, 2012. This type of legislation requires that all 16 states in Germany are in support of the law. One of the states has come forward to express their dissatisfaction with the German Interstate Treaty on Gambling after initially backing the bill last year.
The Schleswieg-Holstein state in northern Germany is now against the treaty. The Liberal Party and Christian Democratic Party in the state are looking to get the ban canceled. According to Jürgen Koppelin, the leader of the Liberal Party in Schleswieg-Holstein, an intrastate licensing system would be introduced, if the other 15 states can’t agree on reforms for the current legislation.
The supporters of the German Interstate Treaty on Gambling have argued that the legislation serves a very important purpose in the country. They argue that the monopoly is a form of protection for the citizens of Germany. In their view, the law is designed to protect consumers from problem gamblers to children.
click here to see most Popular PagesGerman gaming lawyer Martin Arendts said that “the argument that only a monopoly can protect customers, prevent problem gambling and guard against fraud would not hold any more.”
Restrictions causing more harm than good
Germany is just the latest example of a country that has seen its gambling bans cause more harm than good. The United States, Australia, France and Russia have also enacted controversial gambling bans over the last few years. Most of these legislations have prevented free trade in the market.
The growth of online casino gambling isn’t expected to slow down anytime soon. Governments with a proactive approach could be taking advantage of the revenue that would be available from regulated online gambling. According to a report that was released earlier this week by U.S. congressman Jim McDermott, the United States could add over $40 billion in revenue over the next decade from taxes tied to a regulated online gambling industry in the country.
The Schleswieg-Holstein forces have come to realize the problems that occur when online gambling is restricted. Their reform ideas seem to be a more logical solution on how to properly oversee online gambling in the country.
I hope everything goes well in Germany. I’ve heard that U.S will approve online gambling not soon enough though but they will. Governments at whatever side may they be should look at online gambling as balance as possible. Online gambling is a business and they can profit on this much more. UK for example is the home of many online casino websites and one of which is fr.WilliamHillCasino. I guess the UK government understands what good can online casino bring to them and I salute them with that. I feel for those countries who can’t play casino because of such bans that their government implements.
Danielle Spullswick[Quote] [Reply]
You can still gamble online in Germany – just it has to be with the State provider, such as Bayern Lotto in Bavaria, who tend to offer shockingly bad odds.
And this monopoly was supposed to stop addiction, corruption etc, at which it has truely failed, just look at the recent max fixing scandals. The only way these goals can be achieved is with a strong, competitive industry which is well regulated by an independent, cross border regulator, piad for from the profits of commercial betting activity.
Nate Pearce[Quote] [Reply]