Betfair welcomes EU Commission’s rebuke of German draft law on gambling

The German Laender must now rectify the draft law accordingly or face the possibility of infringement proceedings being brought against them by the European Commission.

Reacting to the issuing of the Commission’s detailed opinion, Betfair’s Chief Legal and Regulatory Affairs Officer Martin Cruddace said: “From the very outset it was clear to us that the proposals put forward by the German Laender were discriminatory, anti-competitive and therefore incompatible with EU law. We are therefore pleased and encouraged to learn today that the European Commission shares this same opinion.”

“Although the federal states claim to be opening up the market for sports betting, the current draft treaty contained a raft of protectionist measures designed to keep private online operators out of the market.

“We now expect the German draft law to be amended so that it genuinely caters for a competitive online gambling market in Germany, and will subsequently ensure the highest standards of value, integrity and security for German consumers.

“As a responsible operator committed to transparency and integrity, Betfair hopes to obtain a licence in the newly regulated German market, and we view today’s action from the Commission as a significant step towards us achieving this goal.”

Aside from the opinion of the Commission, the British and Maltese Governments have also submitted comments to the European Commission that raise serious doubts about the legality of the draft treaty.

On Friday, 1st July, Betfair filed a legal complaint with the European Commission against the new German draft State Treaty on gambling and invited them to open a dialogue with the German authorities with a view to having the proposed draft law amended so that it meets the requirements of EU law.

Specifically, the complaint addressed the following components of the draft law:

- The proposed limitation on the number of licences to a maximum of seven
- The licensing tax of 16.67 % of all stakes (turnover)
- The fixed monthly limits on stakes (not to exceed 750 euros per participant)
- The concession requirements and the selection criteria for the allocation of sports betting licences to operators
- The restrictions upon the marketing of sports betting by licensed operators
- The transitional provisions afforded only to state owned monopolies (a one year exemption from having to obtain a new licence) and the exclusion of private operators from offering games of chance (casino & poker).