European Commission Gives German States 2 Years to Prove Their Case

There was once a hope that all 16 states in Germany would be able to agree on how to regulate online gambling but the states simply could never find the common ground needed for all to agree.

Fed up, the German state of Schleswig-Holstein went out own its own and its parliament agreed to regulate its own online gambling market. Schleswig-Holstein Lander passed a law to give EU operators betting licences.

Back in 2010, the European Court of Justice ruled that the initial agreement proposed by the 15 states caused a state monopoly and was in violation of European Union rules which clearly state that markets must be open to all EU companies. As a result of pressure from the European Commission, the 15 states finally agreed to up the amount of betting licences issued from 7 to 20 and lower the tax amount form 16 2/3% to 5%.

Commercial Operators are not very happy with the current situation and had hoped that the Commission would move against the new rules for online gaming. Operators feel that the rules prevent them from having a sustainable and profitable business in Germany.

Instead, the Commission has chosen to give the German states 2 years to determine the suitability and viability of the rules. However, the Commission also ruled that they could “initiate infringement proceedings” if the states did not monitor and adjust the rules to ensure the appropriateness of them.

Only time will tell what the future of online gambling will be for Germany as a whole.