State Treaty on Gambling infringes European law

Tipico and German Sports Betting Association (DSWV) welcome decision of European Court of Justice

On Thursday, February 4, 2016, the European Court of Justice (ECJ) published the decision in the Ince case (C-336/14) and within classifies the German legal position on the area of sports betting as infringement of EU law. Tipico Sportwetten and the German Sports Betting Association (DSWV) call for fundamental political reform.

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With this decision, the first chamber of the European Court in Luxembourg declares the third state treaty on gambling regulation in Germany for failed. Earlier, the German Federal Constitutional Court declared the State Treaty on Lotteries in 2006 as unlawful in substantial parts. As did the ECJ with the State Treaty on Gambling in 2010.

The decision published today states that the 2012 Revised State Treaty on Gambling (GlüÄndStV) did not remove the incompatibility with EU law. Furthermore, the ECJ backs decisions by national courts that previously stopped the German licensing process. (Last: Hessian Constitutional Court, decision 8 B 1028/15, 16.10.2015)

Licensing process following qualitative criteria demanded

Tipico and the DSWV welcome the legal opinion of the European Court. “The State Treaty and with it all efforts to maintain the monopoly for the state have failed. We agree with the members of the DSWV on a need for a fundamental political realignment which must be sustainable, legally compliant and in line with the market. As the leading provider of sports betting in Germany we ask for a long overdue legal demarcation between us and the unfair black market”, Tipico Co. Ltd CEO Jan Bolz comments the decision.

Amongst others, Tipico and the DSWV demand a licensing process based solely on qualitative criteria. In addition, the regulatory and executive responsibilities of the States should be revisited.