Despite mounting pressure from internal and external sources, the German government has announced that its State Gambling Treaty will come into effect as planned on January 1, 2008.

The new law will effectively ban foreign casino and poker operators from accepting wagers from German citizens.

In addition, Internet Service Providers (ISP’s) can block access to gambling sites and request that banking institutions block payment to these sites as well. 

Although the new law was voted in by all sixteen German states, it is still been met by resistance by many local gambling companies, who view it as illegal. One German operator, Tipp24 AG has even threatened to challenge the law in court and has blamed politics for the fact that it managed to become legislation. Under the new law, poker and casino advertising will not be allowed on the internet or on the television. 

A spokesperson for Tipp24 AG implied that this move was nothing short of hypocritical. “Successful companies in the sphere of state lotteries are to be eliminated through the argument that this will protect the population from gambling addiction. Everyday you can see how seriously the state is really taking the issue by looking at betting outlets, casinos and amusement arcades, which continue to face no advertising restrictions,” he said. 

Local industry lawyers have also stated that, in their opinion, the State Gambling Treaty is illegal, and that it contravenes European law as well as the German Constitution. The German government may even face prosecution by the European Union for going against EU law that calls for free trade and open borders among member states. By banning foreign operators from the German market and restricting the country’s gambling activities to local, state-run companies only, Germany is essentially withdrawing from important EU treaties, many of which it spearheaded. 

Many companies have stated that they intend to continue doing business in Germany , despite the new law. The Austrian-based bwin Interactive Entertainment, which holds a license by the Gibraltar authorities, as well as the former East German government, stated that it would not be halting its activities within the German borders.

The French government, that has passed a similar law to the State Gambling Treaty, actively sought the arrest of Petter Nylander, CEO of Unibet Group PLC, after the company continued to operate in Germany, despite the anti-gambling laws. It remains to be seen how German authorities will deal with online casinos that flout its new law.

Currently Compatiblepoker is translated in German at de.compatiblepoker.com/.  It is undetermined if we will leave these pages up. 

Author:  Renee Kingsley