The European Commission (EC) recently rejected Germany’s first draft online gambling law detailing that it violates the laws created by the European Union (EU). The Commission has extended the period for submitting such bills by another month to give German states the opportunity to amend those objectionable terms. If they are not accepted, Germany could be referred to the European Court of Justice and face fines.
Reasons for Rejecting the Draft
The primary trade body of all European online operators is the European Gaming and Betting Association (EGBA) which has detailed the main reasons for the rejection of the draft. The proposals offered by Germany claim to allow Internet sports betting companies from other European Union states while protecting the interests of the monopolies in the country.
Favoring Monopolies
The problem the EGBA has with this is the Germany states will only issue seven sports betting licenses to external parties while the state monopolies would be exempt from the entire licensing process. This is a major conflict of interest to internal online sports betting operators.
Favoring Land-based Casinos
Another rejected proposal is the exorbitant tax of 16.67 percent which will make online wagering not-feasible for online operators and protect offline gambling companies. An additional proposal calls for specific online games to be offered by operators with land-based properties. Furthermore, the proposed license fee favors applicants with land-based operations and does not relate to the costs of processing those applications.
click here to see most Popular PagesStatement from the Secretary General of the EGBA
The secretary general of the EGBA noted in a recent statement that the German government is clearly slamming the door in the face of other EU online gambling operators and is attempting to extend the state monopoly for offline games as well. He further called on the EC to take swift action against the German proposal to ensure it is not approved.
Quickly Pushing Through a New Law
At the end of 2011, the current German law agrees to by all sixteen states will expire. Therefore, the German government is attempting to create a new commonality between the states to be in place January 2012. However, with this recent draft, it is unlikely. The German state of Schleswig Holstein has already created an alternative gambling law that features a viable regime. The EC and EGBA support this proposal.
If the German government agrees to the proposal made by the individual state, the country may have their new law in place by 2012. Luckily one state was prepared with an alternative to move along the process.
