Created to produce unity in a continent very much divided, it seems that the European Union is facing a tough challenge when it comes to the issue of online gambling.

One of the basic polices of the EU is to ensure free trade across member state borders, yet many countries are shying away from this part of their treaties and insisting that internet poker and casino playing should not included in the deal.

On January 1^st, Germany brought its “German Interstate Treaty” into law after all sixteen of its states voted on the issue. Under the new, controversial legislation, almost all forms of online gambling (except horse racing) were banned in the country. The law was immediately met by opposition within the country, both by individual gamblers who were suddenly faced by very little (legal) choice when it came to pursuing their favorite pastime online, as well as by companies who are already active within the German market and who claim that they are operating with valid licenses. 

This week, the European Gaming and Betting Association (EGBA), filed an official complaint against the “German Interstate Treaty” with the European Union, the first direct challenge to the law. EGBA is a not-for-profit organization that was formed by eight of the major players within the European market, namely: digibet, PartyGaming, Interwetten Gaming Ltd., the bwin Group, Expekt, Unibet, the Carmen Media Group and bet.at.home.com. 

In the complaint, the European Gaming and Betting Association noted that the new German legislation came in direct challenge to the EU’s official opposition to similar laws that were adopted by individual German states in previous cases. They also said that the German Interstate Treaty directly contravened European law. The Secretary General of EGBA said in a statement: “The German Interstate Treaty is incompatible with EU law, and its adoption has left us with no other choice but to make a formal complaint to the EC. We urge the Commission now to fast track our complaint and launch infringement proceedings against Germany.” 

It remains to be seen what steps, if any, the European Union will take against Germany. Since the Unlawful Internet Gambling Enforcement Act was passed in the US in 2006, and many operators re-established themselves in the European market, the issue has been thorny and controversial, as many countries scramble to develop their official stance on online gambling. The EU has adopted a somewhat pro-gambling position, although it is still not clear how much of an effect this stance has on the individual laws of member states. 

Author:  Renee Kingsley