German Prime Ministers Issue Joint Online Gambling Statement

Published Saturday, June 11, 2011 -

In Germany the federal states have announced they will as a group stay any decision on the National State Gambling Treaty at least until October of this year.
Reiner Haseloff who is the Prime Minister of  Saxony-Anhalt, after participation in a meeting of the Prime Ministers of Germany in Berlin released a  communication indicating the intent by all of the ministers. Haseloff expressed the intent of the release by saying "We are well on our way".

A few short months ago in April of 2011 a proposal was sent to the European Commission by only fifteen of the sixteen German States to be considered. That proposal fell into some serious criticism by the online gambling industry as the proposal had flawed and restrictive elements that would have made profits difficult to obtain. The turnover tax policy of 16.66 percent and the requirements for licensing were untenable according to analysts and investors. The biggest online gambling merger of Bwin and Party Gaming saw the share prices of the new firm plummet sixteen percent the day the German government made their proposition known. July 18 is the date the European Commission is expected to hand down its verdict on the restrictive German proposition.

Research conducted on behalf of Betfair the online gambling operator, suggests that the European Court of Justice will outright reject the German proposal mainly because it does not comply with European Membership rules regarding free e commerce written in Article 49 and 56 of the Union’s Treaty. Other research ahs shown that the conditions spelled out in the German States legislature will result in only seven percent of the market using the system while the rest of Germany’s gamblers will still seek web sites outside of the German platform.
A spokesperson for Betfair commented,  "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."


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