European gaming companies request regulations that comply with EU law

After Schleswig-Holstein did not support the Minister Presidents decision regarding the amended Gaming Treaty, there will be a hearing in the Schleswig-Holstein Parliament regarding the planned gaming law that has already been notified to the

European Commission.

This bill is a practical model, since on the one hand, it fulfils the European Court of Justice Guidelines, thereby creating justice and fairness; on the other hand, it gives reputable gaming companies the opportunity to offer German customers secure,

attractive and market-driven products in accordance with conditions that conform to European Union law. The existing grey market can thus be regulated, as well as securing tax revenues for sports and social projects.

Schleswig-Holstein’s bill is also groundbreaking with regard to European aspects, since positive experiences from other EU countries are meaningfully taken into consideration.

Schleswig-Holstein has opted for a regulatory approach that secures the state‘s lottery monopoly, but which would remain receptive to market realities in other gaming segments and simultaneously ensure a high level of consumer protection.

In contrast, the key issues paper for the continuation of the Gaming Treaty, agreed upon by the Minister Presidents on 6 April 2011, goes in the wrong direction. On the one hand, there are significant constitutional and European law concerns. The European Court of Justice Guidelines, which dismissed the existing Gaming Treaty for being contrary to EU law, were not taken into account. The new Gaming Treaty would also fail for this reason.

On the other hand, the model cannot be executed; it contains nothing except a de facto continuation of the sports betting monopoly. Massive advertising restrictions,a far-reaching ban on live betting, restrictive taxation, limits, as well as a ban on poker

and casino games have little to do with societal reality and make it

impossible for private companies to operate their businesses.

The experiences from other EU countries and the experience from the past four years in Germany clearly show that this type of regulatory approach is doomed to failure.

The intended channelling and regulation of existing markets will not be attained, even with the proposed Internet blocks which have not been enforceable to date. Schleswig-Holstein’s bill, on the other hand, creates conditions for a modern and appropriate regulation.

The leading European gaming companies acknowledge their social responsibility.They will fulfil all the licensing requirements and legal obligations, especially their taxliability. Only this will create the foundation of effective consumer protection and the

protection of minors, as well as the prevention of compulsive gambling and manipulation in sports.