The facts and legal position of the sports betting submission procedure Ince (case C-336/14) continues to be considered illegal by the European Commission. Because of this, sports betting operators from within Europe should not be restricted in the German market. The licensing procedure is also not transparent enough.
In March 2014, the district court of Sonthofen filed questions with the European Court of Justice about the rules for gambling in Germany which related to two criminal proceedings. The question is, among other things, whether the penalty for sports betting operations without a licence in Germany imposed by the German authorities is unlawful if obtaining such a licence is not possible, because of the state monopoly for sports betting.
Even though the submission procedure is relating to a provider from Turkey, the Commission’s assessment of the legal situation in Germany is that it is still illegal. The Commission also stated that it is unlawful for the law enforcement authorities to sanction bookmakers who do not possess a licence from Germany, but from another EU member state, and because it is not possible for these operators to obtain a licence from Germany because of the state’s monopoly. The review process for licences which was introduced in Germany does not change this situation, as it was clear form the start that no licence will be issued, as these were limited to state institutions.
The Commission assessed the State Treaty on Gambling form 2012 as inadmissible. The experimental clause in the treaty is being criticised, also because still no licences have been issued, and the illegal monopoly still exists. The Commission also explained that the connections of the issuing body with the law firm representing the state lottery organisations could be a conflict of interests and a distortion of competition. It is now being examined whether action had been taken in the licensing process to prevent the distortion of competition. But what is even worse are the errors that had been made in the concession tender. The concession tender procedure was contrary to the transparency principles, as details of the application would have to be communicated to all candidates before the application is filed. However, no details had been given to the operators.
The sports betting licensing process in Germany had been going on for the last 2.5 years. The lack of transparency, the illegal state monopoly on sports betting and the errors of the concession tender may now lead to the clarification of this legal situation.
The office of Dr. Werner & Partner can assist you with legal matters regarding sports betting or gaming licenses in Malta, and assist you with the application. You are welcome to arrange a personal consultation with us.