European Commission slams German online gaming plan

The European Commission has warned German states that their latest plan to regulate online gambling is not fit for purpose because it is anti-competitive.

The leaders of the 16 German lander are due to meet next Thursday to vote on their proposed amendments to the State Treaty on gambling, which include a removal of the cap on sportsbook licences and a closer look at regulating online casino.

However the European Commission said in a private letter to the German Prime Ministers that these amendments were “not a viable solution” to the issue of online gambling.

The sports betting solution was deemed anti-competitive since the 35 firms that have already applied for a licence would get temporary permits while other firms would have to apply for a full licence which wouldn’t become active until 2018.

The Commission also pushed for a more definitive action on online casino, criticising the lack of effective and viable regulation of online casino games.

The opinions of the Commission will be taken into account at the Prime Minister’s meeting next week in Berlin, but industry experts were uncertain they would have much effect.

Gaming lawyer Martin Arendts said: “At the moment, there are no plans to license online casino games, they are only looking into it.

“From my point of view, the chaos and the legal battle will continue“.

Another gaming lawyer, speaking on condition of anonymity, said: “I’d be surprised if they [the Prime Ministers] changed anything substantial about their plan.”

The Prime Minister’s previous plan to distribute 20 sports betting licences in Germany was halted after European courts ruled it anti-competitive.