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Is Germany to liberalize the betting market?

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The Federal Constitutional Court ordered for a hearing on November 8 in the case regarding the organization of sports betting by private providers.

The long awaited decision, which was first expected in Summer 2005, has now been delayed to Autumn 2005, although a spokesperson for the Federal Constitutional Court expects this to be in early 2006 at the earliest.

However, according to attorney at law Dr. Wulf Hambach, the fact that an oral hearing is to take place is a further indication in favour of liberalization of the betting market in Germany.

The fact that the EU Commission intends to proceed against Germany in the near future because its sports betting monopoly is incompatible with EU law and the contradictory behaviour of the German states will be central to the decision.

In April 2004, the Federal Constitutional Court decided that the public order authorities had to prove that there was a “particular danger” posed if they wanted to close private betting agencies.

That decision is even more important in this context as the representatives of the state gambling monopoly are going to have to come up with a way of justifying their restrictive policy, which is incompatible with European law in view of their extensive advertising campaigns, within November 8.