Out-Law News 1 min. read

European Commission probes German and Swedish gambling bans


The European Commission has launched investigations into German and Swedish prohibitions on internet gambling. The Commission has requested further information from the countries over concerns that they restrict free trade.

The Commission was founded on the principle that EU member states should be able to trade on equal footing with one another. Some countries in the EU, though, increasingly restrict online gambling in order to protect state-run lottery and gambling monopolies.

Germany introduced a new treaty banning online gaming and betting except horse racing related wagers in January of this year. That law replaced one that was already the subject of Commission enquiries.

The Commission said that it was querying whether the law was consistent with its laws on internal markets. The restrictions it wants to investigate are: "the total prohibition of games of chance on the internet; notably sports betting … advertising restrictions on TV, on the internet or on jerseys or billboards; and the prohibition on financial institutions to process and execute payments relating to unauthorised games of chance".

The Commission said that the German stance was not an overall anti-betting one. "It should be noted that in Germany horse race betting on the internet is not prohibited and slot machines have been widely expanded. Moreover, advertising of games of chance by mail, in the press and on radio is still permitted," it said.

"By commencing these broad proceedings only thirty days after the Treaty entered into force, the Commission shows its determination to fight restrictions and in particular prohibitions, which are not backed by genuine consumer protection or public order interests," said Sigrid Ligne, general secretary of the European Gaming and Betting Association. "

The Commission has said that in Sweden's case it cannot allow betting in physical casinos or online in a state monopoly and at the same time bar foreign operators from offering online gambling.

"A Member State cannot invoke the need to restrict its citizens’ access to betting services if at the same time it incites and encourages them to participate in state lotteries, games of chance or betting which benefits the state’s finances," said a Commission statement.

The Commission is conducting an enquiry into whether Sweden's rules on poker games and tournaments are consistent with EU laws on free trade. The country has two months in which to respond to the request for information.

"[The request does not] have any implications for the liberalisation of the market for gambling services generally, or for the entitlement of Member States to seek to protect the general interest, so long as this is done in a manner consistent with EU law i.e. that any measures are necessary, proportionate and non-discriminatory," said the Commission. "The Commission hopes that the answer it receives will lead to an early and satisfactory resolution of the matter."

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