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European Court Opens Door For Foreign Gambling Presence In Germany

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The European Union has been hard at work over the past couple of years ensuring that foreign companies are protected when it comes to gambling laws within a member country. On Wednesday, the European Court of Justice made another ruling for fair gambling practices.

The high court of the European Union ruled that Germany's laws regarding gambling are "unjustifiable." The court claims that the laws allow German companies to maintain a monopoly inside the gambling industry. The ruling could be a precedent setting case that opens up gambling markets throughout the world.

Germany has used the defense that their gambling monopolies keep people from developing gambling addictions. That defense was not only rejected by the court, but also was countered. The court claims that the advertising plan used for gambling within the country is inconsistent with their defense.

"This is a landmark ruling which will have a decisive impact on the much needed reform in Germany," said the European Gaming and Betting Association, in a statement released after the ruling. The association also pointed to the fact that other countries have protected customers by opening up for free competition.

Germany is just one of many nations that has been called out by the European Union in the past few years. France, Italy, and several other countries have started to comply, while the US continues to ignore their trade agreements.

The European Commission has sent representatives to the US to investigate US laws regarding Internet gambling, and have found the country to be in violation. The Commission has given President Obama and his administration a grace period to correct the flaws in their laws, but as of yet the laws have not been changed.

Representative Barney Frank is leading a charge to overturn the Unlawful Internet Gambling Enforcement Act and set up online gambling regulations in the US. If that occurs, several foreign companies would possibly be considered for gaming licenses in the country.

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