In an action that is being criticized by many with stakes in the European gambling industry, the Federal Court of Justice, the highest civil court in Germany, supported a ban imposed on online gambling. This has resulted in some of the leading brands in the gambling industry, like Bwin.Party Digital Entertainment Plc, losing a number of appeals that they had made about related court cases. According to the Federal Court of Justice, the prohibition is legitimate and can go a long way in reducing incidences of problem gambling. The presiding judge stated that the sales venue is likely to be put through stringent checks and regulatory measures.

Move Affects Bwin.Party Digital Entertainment Plc

This move has affected Bwin, which saw its shares fall by 12% after the verdict was passed. The ban goes against the European Union's ruling that the monopoly that Germany has on the gambling industry in the country violates the laws set by Europe. The biggest breach is that a majority of the sports betting that takes place within Germany is controlled by the state. In the past too, Germany has been criticized for permitting betting only on horses while banning other forms of sports betting. A recent court ruling by the European Union did not succeed in closing the suits pending in this regard.

Federal Court of Justice's Ruling Valid till End of Year

The ruling, however, is likely to be valid only till the end of the year. After that, new rules permitting online gambling in Germany will come into effect. The German unit of the online casino operator Bwin, stated that the current ban will not last as it defers from the European rules. The country has a black market, which can pose problems over time. The only way to combat this is to go along with the requirements set forth by the European Union.

Most European Nations Eager to Legalize Online Gambling

In the race to legalize online gambling, several nations in Europe have been taking long strides in that direction. One of the biggest was by Schleswig-Holstein, a German region which has liberalized its laws on internet gambling. By 2025, this law is likely to be enforced. This will help operators like Betfair and Bwin.Party, which get a significant portion of their revenues from Germany.

Schleswig-Holstein's decision to legalize the gambling market was a result of it recognizing that the internet has become an integral part of betting. Casino game players and bettors are opting for online products and services as they are quite easy to access. Though all the regions in Germany were willing to reconsider their rules regarding online gambling, they are skeptical about opening the market completely.

Some of the other European nations that have taken actions in favor of legalizing gambling are Denmark, Ireland and Malta. They have developed a tax regime that online casino sites will have to follow. According to the European Commission, online operators will have to pay 20% taxes while offline owners will have to pay a minimum of 45%. Site owners can start operating their online casinos in these countries once they obtain permits or licenses. Once their services are made available online, players can access online casino games like online roulette legally in these European countries.