Germany Makes Early Headlines

The New Year is only two days old and we already know what one of the big stories of 2008 is going to be. Germany opened the year with an accord that bans private betting companies from the local market, while protecting German state monopoly.

All Out Ban
The accord that bans private betting companies from Germany was ratified in December and took effect on January 1, 2008. It will keep private companies - even those with EU licenses to operate anywhere in the continent - out until 2010.

Thirteen of 16 states have ratified the accord, making the necessary requirement for it to take effect. German government spokesperson Eric Braum said "That's the required majority and we expect to have all the rest coming in by New Year's Eve."

In the two years until 2010 the states will be able to continue capitalizing on the market as they develop a system to allow competition.

What the ban means is a 'Nein' to all Internet gambling and betting games, specifically any such actions involving companies based outside Germany. 'Nein' was also said to any form of advertising online gambling, and even allows blocking access to gambling sites.

The World Responds
The ban, although having gone into effect yesterday, will not pass without opposition. One large online gambling company that understands the word 'nein' all too well is the Austrian BWin Interactive Entertainment AG. It and other betting companies - some 20 of the world's biggest - are expected to file a legal complaint.

"The accord breaches EU law because it excludes foreign betting companies with EU licenses from the German market," said the head of the legal firm representing the companies, Wulf Hambach of Hambach & Hambach.

The law firm that represents BWin, Redeker, said it expects to see thousands of online gambling companies take legal action against Germany.

With these comments and the large stakes involved, it is a sure bet that 2008 will see continuing legal battles over the issue of state monopolies.