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German treaty condemned

Published: 05 July, 2007

The European Commission has condemned Germany’s draft State Treaty on gaming, which has been proposed by the Federal German States, finding it incompatible with European law on a number of fronts. This is the second time the Commission has made a statement on Germany’s position, the first time being in March this year, when it investigated the ban on online sports betting and found it to be out of line with European law.

Now, Commissioners will discuss the situation in greater detail. The areas of particular concern are the restrictions on the free movement of capital, proposed by the German states, the restrictions on advertising and limitations on sales outlets, among other proposals, which the Commission believes restricts competition in this field.

The Commission has now given Germany a further two months to respond to these points before it extends its infringement proceedings to cover the new State Treaty on gaming in its scope.

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