The budget and financial speakers of the Christian Democratic Union and the Christian Social Union agreed this week at a meeting in Stuttgart to propose abolishing the state monopoly on sports betting, and to allow the lottery market to continue unchanged under the terms of the 2004 State Treaty.
The terms of a liberalised sports betting market are to be drawn up in a separate State Treaty.
The Union’s fiscal policymakers believe that the liberalisation of sports betting should be accompanied by the levying of a special incentive tax. It is to be ring-fenced on the basis of the player’s place of abode and therefore assure the federal states a source of revenue from sports betting. This will provide continued funding for mass sport, charities, culture and addiction prevention measures.
“We expressly welcome the Union’s decision,” declared Rainer Jacken, Director of Fluxx AG. “It shows that common sense and economic realism are increasingly gaining ground in connection with the planned State Treaty on gaming. We believe court rulings and political opinions are coming to acknowledge the grave concerns already voiced by the EU Commission.”
“Nobody now wants to be made responsible for a sharp but unnecessary slump in revenue and the impending legal chaos in both Germany and Europe. We citizens are called to abide by the law, and quite rightly so. We should therefore be able to expect our politicians to do likewise. This wise resolution by the Union parties’ fiscal policy spokespersons now means that the German gaming market can be reorganised in an intelligent manner.”
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.
Today the EU (European Commission) started legal action against Sweden and Germany to try to ensure that they comply with the European Union’s free movement of services.
Charlie McCreevy, the EU’s Internal Market Commissioner has given Sweden two months to show that the prohibitive measures against poker games and tournaments are compatible with EU law.
Germany and the Online Gambling Ban
The UIGEA (Unlawful Internet Gambling Act) was passed in 2006. Since then Germany has followed by having signed an agreement, starting Jan.1st this year to ban web based gambling.
Websites with casinos, and or poker rooms and sports betting has been blocked by financial institutions. This will prevent all transactions to or from gambling sites, in Germany. But they are allowing land based casinos to operate, because they think land based can be controlled.