Decision on German monopoly delayed until October
Germany's federal prime ministers hope to bring Schleswig-Holstein within EC-approved regulatory framework by October, despite doubts over compliance of current proposals with EU law.
German’s federal prime ministers have delayed their decision on the new State Gambling Treaty until October, when they hope to have a framework agreed upon by all 16 German federal states or Länder.
The prime minister of Saxony-Anhalt, Reiner Haseloff (CDU), said today following the meeting of state leaders in Berlin that: “We [the federal states] are well on our way”.
The delay will allow the Länder to incorporate the decision of the EC on the compliance with EU law of their proposals, revealed in April, for a restrictive opening of the online sports betting market to private operators based on a 16.66% turnover tax. The EC is due to deliver its verdict on 18 July, eGaming Review understands.
Betfair-commissioned research published today by leading German law professor Professor Bernd Grzeszick of the University of Heidelberg however asserted that the present notified draft “will fail in any assessment by the ECJ as well as in national courts”, as it does not restrict operators’ rights to offer services in the territory enshrined in Articles of 49 and 56 of the EU Treaty “in a consistent and systematic manner as required by the ECJ.”
A Betfair spokesman said: “We are hopeful that the prime ministers use the remaining time available to them to agree on a legally watertight treaty that provides reputable private companies a fair market opportunity and protects German consumers against an uncontrolled black market.”
The northern Land of Schleswig-Holstein is insisting on a less restrictive opening of the market to private operators. Its draft proposal to issue licences to private operators for all product verticals based on a 20% GPT received approval from the EC last month.
The Betfair spokesman added: “The European Commission has already approved an agreeable solution proposed by Schleswig-Holstein and we hope to see this adopted by the other German states.”
Leading gambling data business H2 Gambling Capital has also projected a regulated market in Germany would only capture 7% of total egaming activity in the territory should it proceed with the restrictive opening for sports betting proposed in April.