It looks as if private online
casino and gaming site operators in Germany are in for a battle against state
gambling monopolies following the injunction of Munich's gambling authority that
would prohibit the online betting operator, bwin (formerly Bet and Win) from
operating in Germany under its legitimate casino gaming license which the
company has held for sixteen years. Coupled with the news that the
Bavarian Media Agency was ordered to cease advertising for private online casino
operators (which they are now contesting with the Bavarian State), and that over
sixty betting shops have been shut down, gambling affairs in Germany are most
certainly unsettled at the current time.
Martin Arendts, who is lawyer based
out of Germany, commented on the prohibitions as being an attack on private
online casino and gaming site operators, and that the specific targeting of bwin
is a message to all private operators seeking to do business in Germany.
Since bwin is Bavaria's largest competitor in the European online gambling
market, it has become clearly evident the State is orchestrating the gambling
industry crackdown. Even though bwin's gaming license has not been revoked
(which there is no justifiable reason for doing so), bwin Interactive
Entertainment AG could be severely fined if they do not close down their
business and cease taking sports bets in Germany.
The European Court of Justice will
likely disapprove of the measures taken by the German State. However, just
like the WTO decision regarding Antigua and Barbuda and the U.S., the decision
could be given a bias interpretation by German courts, who have shown their
contempt for community law in the past. The political pressure coming from those
who seek to maintain the German government's monopoly on the casino gambling and
sports betting industry is a formidable force to say the least.
Bwin will have fourteen days to
comply with the injunction. In the meantime, they are looking into every
possible legal maneuver they can take in court to defend their position in the
Germany gambling scene. This is not the first time that Steffen Pfennigwerth (bwin
owner) has won courtroom battles, including a German Federal Supreme Court case
that challenged Bet and Win's trading license. However, the current injunction
is the toughest roadblock the company has faced to date. If, after the
fourteen-day time period has elapsed, and the injunction is enforced,
Pfennigwerth said he will seek a financial claim from the State of Saxony for
approximately €500 million, which would cover the loss of funds due to the
suspension of bwin's online gambling, sports betting and casino gaming
activities.