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European Commission investigates German online gambling law
By Gene Koprowski
A lobbying group for European gambling organizations is asking the powerful European Commission to "overturn" a German law that prohibits some forms of Internet betting.


According to the the European Gaming and Betting Association, Germany's law violates European Union laws providing for the free movement of goods and services within the continent. The German law applies to all forms of Internet gambling -- except horse racing.  The EGBA is an association of the European gaming and betting operators, including Bet-at-home.com, Bwin, Digibet, Carmen Media Group, Expekt, Interwetten, PartyGaming and Unibet.

The commission is the EU's regulatory arm, and has opened an investigation into the German law. A commission spokesman, Oliver Drewes, said the government "soon will decide" whether Germany broke EU laws. "Regulators are aware of the gambling group's concerns," Drewes said.
 
The commission and European courts have continually ruled that the EU member countries cannot in any way restrict gambling businesses that operate openly in other states.
 
Expert said the law came into force on Jan. 1 -- but has been controversial since it was first proposed.
 

Competitive Hurdles

EU Internal Market Commissioner Charlie McCreevy is seeking to stop "cross-border hurdles to competition" in online gambling. 
 
Government officials in Europe are due to decide in next few days how to push ahead with legal actions in the gambling sector against Germany, and several other EU states.
 
The EGBA called for a quick ruling.
 
"We urge the Commission now to fast track our complaint and launch infringement proceedings against Germany," said EGBA secretary general Sigrid Ligne.
 
In a separate, but related matter, Sweden's largest daily newspaper, Aftonbladet, asked Commissioner McCreevy to accelerate his legal action against the Nordic country over gambling restrictions.
 
The paper makes $12.7 million a year in revenue from online gambling ads,  the newspaper's editor-in-chief Jan Helin said.
 
If Brussels were to move against Germany, it would be seen as something of a final warning before the other countries are taken to the European Court of Justice, which has the jurisdiction to fine and force a country to change its laws.


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