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EC About to Move Against Germany's Online Gambling Ban

by PokerPages.com
Fri, Jan 25th, 2008 @ 12:00am

The European Commission (EC) is set to step up legal action against Germany next week for thwarting foreign competition in the country's online gaming and betting markets, including those for online poker, sources with knowledge of the decision said yesterday.

"The decision is expected to be adopted by the Commission next Thursday," a source familiar with the legal action was quoted in a Reuters article.

A new German law came into force on January 1 that bans online gaming and betting, with the exception of horse racing. The EC had previously made known its opinion that such a course would conflict with the principles of free movement of goods and services between EU member countries.

The European Gaming and Betting Association (EGBA) on 15 January lodged a formal complaint with the EC condemning the ban that the 16 German states voted in as unlawful and urged the Commission, the EU's executive arm, to take swift action to overturn it (click here for related article).

"The Commission is expected to open a new legal action with a letter of formal notice against Germany over the new law and could well drop the old legal action it started last year," the gaming industry source said.

EU Internal Market Commissioner Charlie McCreevy wants to crack down on hurdles to cross-border competition in services, a core part of the 27-country European Union's single market.

The new legal action could end up in the European Court of Justice (ECJ), where Germany could be fined and forced to change its laws to comply with EU rules.

McCreevy has launched proceedings against about 10 EU countries for stifling competition in their gaming or lottery sectors. He has drawn support from several rulings by the European Court of Justice, the bloc's top court.

Read Related Article:

  • German Online Gambling Ban Challenged by Gambling Industry Group EGBA
  • Germany To Ring In New Years With Online Gaming Ban
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