ECJ Upholds EU Law Over State Regulations in Online Gaming Case
A recent decision by the European Union’s Court of Justice (ECJ) offered clarification as to how EU law affects online gaming regulations in individual states within the Union. The ruling in the Winner Wetten v. Mayor of Bergheim case earlier this month stipulated that any national gaming laws needed to be consistent with EU law and denied Germany an exception to preexisting EU regulations that allow for free trade and fair competition.
The case at the heart of the decision involves German company Winner Wetten, which was placing sports bets on behalf of the Maltese company Tipico. While Tipico retains a Maltese gambling license, Winner Wetten was ordered by the mayor of its hometown of Bergheim to cease betting operations because it lacked its own gaming license issued by the Land of North Rhine-Westphalia, one of the 16 states within Germany. Winner Wetten then took the matter to court, claiming, among other things, that it violated EU treaty law promising companies the freedom to establish a business and provide services.
The case was referred to the EJC and Advocate General Bot issued his opinion on the matter on January 26th. Bot ruled in favor of Winner Wetten, stating that the Land of North Rhine-Westphalia’s existing laws regarding sports betting were in violation of EU law. It is worth noting that North Rhine-Westphalia has only issued one gaming license in the territory, to the Westdeutsche Lotterie, one of a number of state run lottery ventures in Germany.
Bot also commented on the German government’s argument that the country should be granted an exception to EU treaty laws because the matter pertained to online gaming versus some other type of business. In Bot’s eyes, EU law does not allow for such exceptions and he went so far as to say that it would not be in the best interest of European consumers to make exceptions that do not allow for consistent rules and regulations, even in the online gaming sector. Ultimately, Bot ruled that state laws must be consistent with existing EU treaty laws without exception.
The European Gaming and Betting Association (EGBA) was quick to comment on the landmark ruling. In a statement posted on its official website, EGBA Secretary General Sigrid Ligné offered the following insight on the case: “This opinion is crucial for developments in Germany. The AG has made clear that EU law prevails and that unjustified restrictions are not admissible even for a transitional period. Today’s opinion will further fuel the current political debate on online gaming in Germany.” Ligné went on to add that the EGBA agrees with Bot’s ruling and hopes it will lead to more consistent and systematic regulation of online gambling across the Union.
The ruling in the Winner Wetten case stands in stark contrast to another gambling-related EJC decision issued last fall. The case stemmed from online gaming group bwin sponsoring a Portuguese soccer team even though bwin did not have a license to offer gambling services within the country. Portugal, which has a statewide monopoly on online gaming, ordered the sponsorship deal to cease immediately. The EJC ruled in favor of Portugal, claiming the country’s gaming restrictions were reasonable and legal.
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Poker lexicon:
- BUNNY - An eight. So named because one can easily draw "rabbit ears" above the numeral 8, "paws" in the middle and "feet" at the bottom. (Do this only at home, and not on cards that will be used for play.)
- FULL HOUSE - A hand consisting of 3-of-a-kind and a (different) pair.
- BUTTON CHARGE - A periodic fee paid by whoever is the button, perhaps every 20 minutes or 30 minutes. Constitutes part or all of the HOUSE CUT.
- CALLER - One who calls. Sometimes used collectively, as in "3 callers".
- BET - To put money into the pot, pursuant to the rules of the game, thus maintaining a chance of winning the pot.
- S&M - Sklansky & Malmuth. Generally refers to the ideas and algorithms published by these two authors. When used in a 7-card stud context, often refers to "7 Card Stud For Advanced Players", and when used in a Hold'em context, often refers to "Texas Hold'em For Advanced Players".
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