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WAAG: Germany Overview

A part of our World at a Glance Series: The online casino gambling industry in Germany is a moot-point right now because of an adamant state monopoly in place that prevents any foreign internet gambling and betting companies from competing within the German market. The decision to keep the state-run monopoly in place was made in 2006 when 15 of the 16 German states agreed to extend the current monopolistic policy until the end of 2011. That means that if the European Commission is not successful in changing the German government’s stance on the online casinos the monopoly on betting and lotteries in the country will surely remain in place until 2012 – at which time the state governments would again have the opportunity to re-vote on new policies.

The online casinos, even through the state monopoly, are banned as a part of the Gambling Treaty signed into law by majority signatures from the 15 German states. Controversially, the German laws have gotten increasingly strict in the past several years as parts of the 2006 Treaty only now begin to take effect. Essentially, the Treaty agrees that all state lottery and betting activities would only take place through the state monopoly after January 1, 2009.

Online casinos licensed in other EU member-states are all currently pushing for more inclusive German rules. Even if internet gambling is illegal, the European Union policies dictate that the other EU licensed gambling companies should have a fair shot at access to the German market. These foreign companies are pushing the limits in German while also pressuring the European Commission to file European Court of Justice against Germany if it does not comply with requests to open its protected gambling market.