Setback for Bwin.Party as German Court Upholds Ban on Internet Gambling

A series of appeals challenging the ban on internet gambling and betting operations in Germany was lost by Bwin.Party Plc and other online gambling companies. Germany’s highest judicial authority, The Federal Court of Justice dismissed the appeal in five different civil suits which were brought up by different internet based betting companies. After this ruling was passed, Bwin’s share price fell by 12 percent at the closing time of the London stock market.

The presiding Judge Bornkamm said after the court proceedings that online gambling operations should be subjected to stringent laws and regulations due to the apparent dangers of the online gambling. These dangers are mainly because of the easy accessibility, and anonymity that internet offers its users.

Decision in line with European Union court ruling last year

The highest court of the European Union had ruled in 2010 that the betting monopoly that Germany enjoys is against the EU laws. The country has received a lot of criticism for banning other types of sports betting while permitting private betting on horses. However, the European Union court ruling did not bring an end to a number of civil suits that were pending in German courts.

A regulated market opening is a better solution

BWin’s German unit, BWin e.K., is considering registering a constitutional complaint against the ruling. A Bwin e.K. official stated that the current ban defies European laws governing betting and gambling and is not the right solution. The only way to adhere to the European law and fight the illegal German gambling market is to have a controlled market opening.

German provinces are discussing how the state treaties that have framed the current laws can be revised. The Schleswig-Holstein state will be opening the market again next year, as the state treat is elapsing December 31. This treaty had been put in place with a view to take previous rulings of the EU judicial bodies and German constitutional court into consideration.

The September ruling which overthrows appeals filed by the internet betting companies is similar to a ruling passed a top administrative German court earlier this year which supported the online betting ban as it covers both private and government lotteries.

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