European Court of Justice Overrules German Legislation!

On the 8th of September 2010 the European Court of Justice (ECJ) has landed the German government with a serious blow by deciding that current gambling bans put in place in 2008 were unjustified and should be removed or changed.

The German Government in 2008 has introduced a ban on most forms of online gambling together with a state monopoly for lotteries and sports betting.

The ECJ in three separate rulings has decided that these ban and other associated rules were in violation of EU laws and should be abolished or changed to be in accordance with EU law.

This comes as great news for offshore private operators as one of the rulings stated that those operators using offshore licenses to offer gambling in EU member states can continue to do so even if they do not offer gambling services in the country that has issued their license.

While the German government is free to establish state monopolies with regards to lotteries and sports betting, they must do so in accordance with objective public-interest and limit games of chance in a systematic and consistent manner and be in accordance with EU laws.

This is a welcomed change after previously contradicting rulings in Sweden and Portugal by the ECJ in related matters.