EU Member States must comply with EU legislation

Advocate General Yves Bot of the European Court of Justice has released an opinion against the German ban on sports betting in a lawsuit involving Winner Wetten. Bot confirms that European law rules over national gambling legislation, and therefore an exception or transitional period is not allowed.

Last month the Court of Justice began hearing the case of Winner Wetten against the Mayor of Bergheim, directed by the administrative court of Cologne on October 9, 2006. Winner Wetten, a gaming company based in Germany, had accepted bets on behalf of an online betting operator based and licensed in Malta. The Administrative Court had requested the opinion of the European Court of Justice on the question whether a government can continue to apply for a transition period for casino gambling laws, while they are contrary to the freedom of establishment and freedom to provide services as provided in Article 43 and Article 49 of the EU Treaty. The Cologne court ruled that the Köln Nordrhein-Westfalen law on sports betting in 2006 contrary to the freedom of services, as explained in the Gambelli ruling. Advocate General Bot rejected the argument of Germany and other EU members that they should be allowed to have such an exception, and said that Member States should immediately halt the use of national gambling legislation which is not in line with EU legislation. Bot clarified thatthere are no legal arguments for an exception to the direct application of the gambling and betting treaty. He also confirmed that it is not in the interest of consumers, to enforce legislation which does not comply with the European legislation. Bot said such legislation is not appropriate for the protection of consumers.

EGBA Secretary General Sigrid Ligne said in an interview: “This opinion is crucial for developments in Germany, the Advocate General has made clear that EU law prevails and that unjustified restrictions are not admissible even for a transitional period. Today’s opinion will further fuel the current political debate on online gaming in Germany. Essential is Advocate General Bot´s confirmation that it is detrimental to consumers to have national gambling legislation that doesn’t offer consistent and systematic protection. Many Member States do not have consistent and systematic gambling legislation; this opinion clearly strengthens our argument.