• Betfair Complains to EU About Germany's Gambling Treaty

    07 July 2011


    A draft over Germany’s gambling rules, which is still being considered by German authorities has Betfair Group Plc, a British online gambling site, already calling foul. According to Betfair, the draft will force it to pay over 16% on all stakes and it will also restrict licenses for private betting companies to seven. According to Betfair these new rules would be “discriminatory and protectionist.”

    Betfair complained to the European Union this week over this draft proposal. The EU Court of Justice already ruled in September of last year that Germany’s betting monopoly violates European laws because it is not coherent. Currently Germany only allows state-owned companies to offer sports betting.

    The current state betting treaty from Germany would completely overhaul the country’s state monopoly on sports betting but some think it is not going far enough. According to Martin Cruddace, chief legal and regulatory affairs officer at London-based Betfair:

    “Although the federal states claim to be opening up the market for sports betting, the current draft treaty is riddled with disproportionate, discriminatory and protectionist measures designed to keep private online operators out of the market. If the treaty came into force it would neither set incentives for customers to play with licensed operators nor would it stand up to the scrutiny of the EU Court.”

    Germany and the EU have yet to comment on the complaint from Betfair. Germany reached a preliminary agreement on the new rules in April but all the leaders of Germany’s 16 states agreed to delay the final decision until October of this year.

    Related News

    • 17 January 2016

      Timetable for Betfair-Paddy Power Merger Announced

      In the past 24 months, we have seen some absolutely huge acquisitions and mergers in the online gambling world. The biggest one of 2016 could already have a timetable set after an announcement was made on the merger of Paddy Power and Betfair. This merger has been officially given the green light by the Competition and Consumer Protection Commission. Now, they expect the merger to be complete on February 2, 2016. What This Merger Means This merger means two things for their stock.

      Read full article
    • 07 September 2015

      Ireland Announces List of Initial Licensees

      For the past few years, more and more European countries have been setting up regulatory frameworks for online gambling. Getting these frameworks pushed through a gauntlet of political maneuvering is hard enough, and it can lead to some major delays. This has been the case in Ireland for quite some time, but they were finally able to come to an agreement and get things going. Now they have announced their initial batch of two-year licenses to a total of 27 companies. Well-Known Industry Names

      Read full article
    • 31 October 2011

      German Online Gambling Proposal Criticized

      The rules for online gambling in Germany are changing and though it seems that Germany is relaxing its grip a little, it is not far enough according to the Remote Gambling Association (RGA) and some of Europe’s largest online gambling operators. Currently 15 of the 16 German States have a adopted a policy that will follow the French model that taxes all bets at 5%, far lower than the originally planned 16.67%. The total allowed licenses will also increase from the current 7 to twenty.

      Read full article