Betting Companies to Take Legal Action Against Germany in Online Gambling Battle

It's BWIN verses Germany in the latest fight for online gambling legality, or better to say BWIN verses Goliath.  But we all know that story by now.  David almost always comes out victorious against his much bigger foe. 

Online gambling will be banned in Germany as of Jan. 1 after German states ratified an accord that preserves the country's state monopoly for lotteries and most forms of betting.

At least 13 of Germany's 16 states have submitted the ratification documents, Eric Braum, a spokesman for the Hesse government, which monitors the process, said in an interview today. ``That's the required majority and we expect to have all the rest coming in by New Year's Eve.''

All 16 state legislatures voted by mid-December to approve the new online-betting laws, which the states negotiated after the Federal Constitutional Court ruled in 2006 that the former model was unconstitutional. The new rules, which expire at the end of 2011, have drawn criticism from Internet betting companies and lottery brokers like Bwin Interactive Entertainment AG, Fluxx AG and Tipp24 AG.

The new rules ban any form of Web-based gambling or brokering of games over the Internet.

Online betting companies including BWIN Interactive Entertainment AG and Fluxx AG are gearing up to file a legal complaint against Germany's state monopoly on lotteries and most forms of betting, law firm Hambach & Hambach head Wulf Hambach told Die Welt newspaper.

Hambach said he represents about 20 of the world's biggest betting companies, according to the newspaper.

From 1 January sichert sich der Staat per Gesetz das Geschäft mit Lotto und Sportwetten secures the state by law business with lottery and sports betting. Funktionieren kann dies nicht. It can not. Denn die Verbraucher können ins Internet ausweichen – und nach Ostdeutschland. Because consumers can dodge the Internet - and after East Germany. Eine Klage vor dem Europäischen Gerichtshof läuft bereits und könnte das Gesetz wieder zu Fall bringen. A complaint before the European Court of Justice is already the law and could return to them.

Hambach & Hambach is indeed one of the world's leading gaming firms. 

Our practice encompasses all aspects of (online) media and entertainment law - with particular expertise on gaming law. Our international structure and our focus on the (online) media and entertainment industry ensures that our clients are provided with expert advice on German and International law in these areas.

We have consistently been regarded as a leading international law firm in the gaming sector, providing expert advice on (online) gaming, (online) skill games and (online) entertainment games. One of the key factors of the service provided by Hambach & Hambach is the depth of experience and level of expertise it can bring to bear for the benefit of clients.

We cooperate with specialised firms from around the world, particularly those in Western and Eastern Europe and in the United States. This helps us in our quest to provide an international and comprehensive legal service.



Germany's states earlier this month ratified an accord solidifying their monopoly on lotteries, online gambling and most forms of sports betting in Germany. The accord will effectively ban private betting companies from operating in the country from tomorrow.

'The accord breaches EU law because it excludes foreign betting companies with EU licenses from the German market,' Hambach said.

The newspaper also cited law firm Redeker's Michael Winkelmueller, who represents BWIN and Fluxx, as saying he expects to see legal action by all 3,000 betting companies active in Germany.

Germany's states have voted in favor of banning private sports betting companies until 2010, during which time they will develop a system by which private betting companies can obtain concessions.

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Christopher Costigan, Gambling911.com Publisher CCostigan@CostiganMedia.com

Originally published December 31, 2007 9:54 am EST