EU Questions German Gambling Law

Germany's draft gambling law has come under the microscope, with the European Commission raising serious doubts about whether it will end a state monopoly on online gaming.

The European Commission said in an emailed statement on Monday that Germany should not adopt its draft gambling treaty, pointing out that the planned new regulations are in violation of European Union laws.

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It is unclear which aspect of Germany's proposed gambling regulations were considered offensive, as by all reports it would overhaul the monopoly the country's 16 states hold on sports betting and lotteries. But earlier this month online gambling firm Betfair complained the new laws would limit the licenses for private betting companies.

The European Gaming and Betting Association (EGBA) weighed in on the debate as well, with secretary general Sigrid Ligné saying that the draft German treaty - which was agreed upon by the 16 federal states - has many provisions in conflict with EU law.

"It is clear that, taken together and especially including a prohibitive tax on wagers from which the incumbent state monopoly is exempt, these provisions effectively slam the door in the face of EU operators from other member states and will in fact extend the monopoly for offline to online games," she said.