Germany Outlaws Online Gaming TodayA Majority of German States Voted to Ratify Online Gambling Ban |
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Online poker players in Germany have one fewer reason to celebrate the coming of the New Year. Jan. 1, 2008, will mark the beginning of a state-ratified online gambling ban in Germany, a move meant to safeguard the country's state monopolies on lotteries and other forms of online wagering.
The new online-wagering laws - which have been ratified 13 of the 16 German states, so far, which means the majority requirement has been met - ban any form of Internet gambling or the brokering of games online. The new rules allow the German states to order banks and financial institutions from transacting with Web sites offering online wagering (similar to what the Unlawful Internet Gambling Enforcement Act does in the U.S.) and to order Internet service providers to completely block those sites.
Tipp24, one of Germany's leading online lottery brokers, said in a statement that it felt the ban was illegal and that it was prepared to take legal action to ensure it could continue to conduct its business.
Jens Schumann, Chairman and founder of the company said, "The action taken by the states in this case is another example of how politics interferes in the market economy in a biased manner under the guise of maintaining order. Successful companies in the sphere of state lotteries are to be eliminated through the argument that this will protect the population from gambling addiction. Everyday you can see how seriously the state is really taking the issue by looking at betting outlets, casinos and amusement arcades, which continue to face no advertising restrictions."
BWin, which is licensed in Gibraltar and also operates under a license issued by the foremer East German administration is also reported to have stated its intention to contest the ban claiming it is illegitimate in the face of the company's existing licenses.
Advertisements for Internet gambling are also severely restricted as a result of the new rules. The regulations imposed on such advertising states that the ads may not "directly invite, incite, or prompt," people to gamble online, but they can still let potential customers know that Internet gambling is possible.
The Brussels-based European Commission, a regulator for the European Union, still has the opportunity to challenge Germany's new regulations. The Commission told Germany earlier this year that it thought a total ban on Internet gambling was excessive and asked the country to reconsider. Germany refused and set in place the ban that will become official tomorrow. The Commission can sue EU member states for failing to adhere to EU law and to force them to comply.
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