German Court Rules Against State Lotteries Being Monopolies
The German online lottery and gambling market is seen as one of the most competitive around. The revenues involved are massive and is no surprise that private online lottery companies like Lottoland and Zeal see this market as key to their overall operations.
In an interesting turn of events a German Court has rules that state lottery monopolies are unlawful. Based on a complaint brought by an undisclosed Bavarian firm, the Administrative Court of Munich issued a ruling that upheld the complaint from the Bavarian firm which believed that they were purposely blocked from obtaining permission to operate a state lottery in the district of Upper Palatinate.
According to Attorney Martin Arendts, the operator was deliberately given the runaround despite having submitted all the relevant revised applications which were required to meet the state’s regulatory requirements.
According to the Munich Court the state’s desire to maintain its monopoly was in violation of Article 56 of the Treaty of the Functioning of the European Union which is aimed at avoiding any protectionist ideas of EU member states.
Needless to say online operator Lottoland was delighted at the ruling as it backs up their claims that opposition to their activities mainly stems from existing state monopolies fearing competition and not from any concern for adhering to regulatory requirements.