Online Gambling Banned in Germany

January 14, 2008

All the votes from the 16 German states are in and all are in favor of the new gambling treaty that, as of January 1st, banned all online gambling of any form in Germany.

The law that prohibits foreign online gambling sites from accepting wagers from German residents is expected to be heavily challenged by not only the online gambling operators that have German players but also by the European Union because the new German legislation clearly go against current EU laws.

Much like its U.S. counterpart, the UIGEA, the new German legislation puts Internet service providers as well as banks in charge of blocking foreign IP’s and payments to and from online gambling sites. All online gambling advertising is also prohibited with this new law.

This is nothing new to online casinos or internet poker rooms as they have been fighting separate German states for a long time. Bwin is currently in a suit with 4 German states with the outcome yet to be determined. German constitutional lawyers have already confirmed that the State Treaty on Gambling in breach of the German constitution and European Union laws.

Jens Schumann, chairman for online gambling company Tipp24 AG doesn’t think the new legislation would stand up in court and recently said that this company would be willing to fight for its rights in court:

"The action taken by the states in this case is another example of how politics interferes in the market economy in a biased manner under the guise of maintaining order. Successful companies in the sphere of state lotteries are to be eliminated through the argument that this will protect the population from gambling addiction. Everyday you can see how seriously the state is really taking the issue by looking at betting outlets, casinos and amusement arcades, which continue to face no advertising restrictions."