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October 2011

RGA Frustrated By German Gambling Law Proposals

by Renee Israel

Proposed German Gambling Law Prompts RGA Statement

The Remote Gambling Association (RGA), the largest online gambling trade group which represents top licensed and listed gambling operators, has reacted to a proposal by German states regarding the adoption of a new gambling law.

The RGA said in a statement that it was disappointed by comments made by the Minister Presidents of the German Lander who urged the adoption of a State Treaty pertaining to gambling laws.

By July next year, the Lander is hoping to introduce a system which will gravely affect gambling in the country.  Among the changes that will be seen include the outright ban of all online poker and casino games, as well as the adoption of an uncompetitive tax regime.

Changes to German gambling laws are going in a totally different direction to those sought by other European countries such as Spain and Denmark who are in the process of legalising and regulating online gambling, based on a viable tax model.

The Chief Executive of the Remote Gambling Association, Clive Hawkswood said: "There appears to be no connection between the desire to provide German citizens with a regulated market and the actual text of the State Treaty. The Minister Presidents say on one hand that they wish to encourage sports betting with regulated German operators, but at the same time deny this to citizens who wish to partake of casino and poker games online."

Hawkswood said that it was clear that the new gambling law proposed will have limited effect in reducing the large number of Germans who gamble with operators who are licensed in other jurisdictions and which offer casino and poker products.

"Policies to restrict consumers from accessing such sites have consistently been shown to be ineffective," he said. "As such, this policy will have limited practical impact."

In the meantime, Schleswig-Holstein decided to pass its own gambling laws, regulating gambling products, including those online. The EU has approved this state's laws.

German Gambling Proposal Goes Against EU

The new gambling State Treaty proposal goes against European law, according to the Remote Gambling Association.

"The European Commission has repeatedly stated that the draft State Treaty falls foul of EU laws and the latest version appears to make little headway in meeting with the Commission's concerns," said Hawkswood. "In fact, such an approach simply makes the Schleswi-Holstein more attractive and creates a fragmented, confusing and undesirable situation for German consumers."





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