Germany: Kiel-based JAXX to apply for licences shortly

While the reorganisation proposed by the remaining 15 federal states has been declared by the EU Commission to be in conflict with European law, the commissioners in Brussels have already given the go-ahead for the Schleswig-Holstein model. This latter envisages the customary parameters that apply throughout Europe, such as an unlimited number of sports betting licences, moderate taxation of the net gaming proceeds (hold) at 20 % and allowing lotteries, poker and other forms of gaming to operate over the internet.

JAXX SE, which has been based in Schleswig-Holstein since its establishment in 1998, will apply for licences for its subsidiaries for sports betting and other forms of gaming under the new law as soon as the parameters have been finalised. The new licences are then to take effect from the start of March 2012. JAXX SE's subsidiaries will use the permit issued in Schleswig-Holstein to operate particularly over the internet throughout the remainder of Germany, and will pay taxes and contributions in Schleswig-Holstein.

Mathias Dahms, Management Board spokesman of JAXX SE, remarked: 'We welcome today's decision by the state parliament in Kiel. The new gaming legislation sets the bar high for promoters and sales partners, with standards that lead the way in Europe. Only serious, economically sound companies such as JAXX SE will be in a position to meet the requirements for the licences.

The new law provides legal certainty and strikes a fair balance between protecting players, the interests of consumers and entrepreneurial liberty. The other 15 federal states would be well advised to copy the Schleswig-Holstein model. For the time being, only Schleswig-Holstein will be able to draw on this fresh source of revenue for the state's finances. We have always believed in this location and won't be forced away. We will be investing in Schleswig-Holstein again in future and creating new jobs here. Today we are especially proud of our heritage as a Schleswig-Holstein company.'