A German administrative court has demonstrated that European Union (EU) law does not take precedence over local law.Two courts in Berlin and Düsseldorf have rejected claims by gambling operators who tried to argue that local laws violated established EU protocols.
In both cases, the crux of the dispute was the required distance between gambling dens.The plaintiffs in the lawsuit have not been identified, but the results extend across the gaming industry.
It's not the first time gaming operators have tried to argue that German law violates EU law.However, it is clear from the responses of both courts that the country's legal system follows its own rules.
Berlin gains ground
In the state of Berlin, the legal minimum distance between sports betting institutions and existing gaming venues is 500 meters (1,640 feet).This follows how the state has advanced its gambling laws after the Fourth State Convention on Gambling came into effect.
In connection with this provision, the State Office for Civil Regulation (LABO from German acronym) has rejected a number of applications from gambling operators.They were trying to operate a betting shop in a place that would be less than this distance from existing gambling venues.
The operators are trying to get Berlin to change its stance.On the one hand, it argues that the licenses granted to gambling establishments under the Gaming Venues Act and national gambling treaties are valid.It also asks the LABOs to grant their respective betting agents licenses to operate.
In particular, it notes that no minimum distance is required to protect minors or players.It is also unconstitutional and against European law, putting sportsbooks at a disadvantage compared to gaming halls that were already operating before the new law came into force.
There is also a caveat that no two gambling dens should be within 2 meters (2,000 feet) of each other.This is part of a legal battle between two unidentified companies to prevent one operator from monopolizing certain territories.
Berlin's Fourth Administrative Court has dismissed all claims, according to a recent announcement.The court ruled that Berlin has a treaty and therefore has the right to establish a gaming regime in any way it sees fit.The court also dismissed an action seeking to revoke existing licenses on the grounds that betting operators lacked the necessary legal status to claim them.
Düsseldorf backs Berlin's position
In Düsseldorf, gambling operators must keep a minimum distance of 350 meters (1,148 feet) from public schools and child and youth welfare facilities.This also applied when the most recent Federal Gambling Convention came into force.
The gamblers tried to fight the state government here too.But, like Berlin, it failed to make a convincing argument.
In a separate statement, the Düsseldorf Administrative Court confirmed that the rights of betting operators and betting brokers are not as important as those of consumers.Businesses cannot claim that the law violates EU law or that it is unconstitutional.Like Berlin, Düsseldorf also interprets its gambling treaties, allowing states to make their own rules.
The operator can attempt to appeal, but in that case it must go to the Higher Administrative Court of North Rhine-Westphalia in Münster.Based on these and other rulings, the trial won't last long.
Investigation Commissioned by Gaming Regulators
With Germany's new gambling treaty and new regulators in place, everyone is wondering what is going on with the industry.Online gaming and sports betting in the country are only recent and need to be evaluated.
The Joint Gaming Authority (GGL for its German acronym) has commissioned a study to carry out its evaluation.Dr. Tobias Heyer from the Institute of Public Health and Nursing at the University of Bremen will lead it.
The purpose of the study is to find out how well the new treaty is working and whether responsible gambling solutions are working. The GGL did not say when the study would be completed, but said it plans to conduct a "comprehensive assessment" of the treaty's effectiveness in 2026.
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