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Online Casino Conditions >>> Betting News >>> August News


German Casinos and Gambling Monopoly Affects Bwin

Online Casino Conditions Staff
August 10, 2006

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 Even though bwin's gaming license has not been revoked (which there is no justifiable reason for doing so), bwin Interactive Entertainment AG could be severely fined if they do not close down their business and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.

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