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German Legislation Discriminates

Germany is one of the dozen or so EU countries that has expressly defied the requests of the European Commission and not only blocks foreign online casinos from accessing the market, but domestically based internet gaming companies are also illegal under the new State Treaty on Gaming. As a bit of a slap in the face, the German authorities passed the new gaming treaty on the first of the year – well into the negotiations with the Commission. The country has a keen interest in protect state monies that come out of a monopoly on lottery and online casino gaming activity. Although this legislation will likely cause the country to face a referral to the European Court of Justice, the German authorities continue to enforce the new legislation.

Interestingly enough though, domestic online casino gambling companies were not saved but the new legislation. Tipp24, a German owned and operated internet gaming company was forced to lay-off a huge number of its employees at its German headquarters as a result of the new German legislation. Tipp24 is moving the company to the UK to better access the rest of the European online casino gambling industry – sadly though the company’s core German market is likely mostly lost.

Although Tipp24 is complying with the new legislation, the company plans to fight the government on this policy. The legislation is supposedly designed to protect land and online casino gamblers from addiction, but that is less likely to happen now that the responsible gaming companies are leaving the market. Also, as Tipp24 moves headquarters out of the country, the German government is losing a huge portion of the tax revenues that came from online gambling related companies.