European Union’s top court says Germany can’t punish online betting operators

The European Union’s top court has driven another nail into the coffin containing Germany’s online gambling law.

On Thursday, the Court of Justice for the European Union (CJEU) issued a ruling that said Germany couldn’t impose penalties on online betting operators the government considers to be operating without a license because the government has made it impossible for operators licensed in other EU countries to obtain German licenses.

Germany’s 2012 Interstate Treaty called for a limited number of online sports betting licenses to be issued, while prohibiting other forms of online gambling. Germany announced its 20 online betting license recipients in 2014 but court challenges by operators who found fault with the application process have prevented any licenses being issued.

The CJEU’s ruling supports the Advocate General opinion issued last October that said the Treaty’s edicts were unenforceable due to no licenses having been issued. This stagnation effectively preserved the existing state-run betting monopoly, which has been deemed incompatible with EU free trade rules. The CJEU also criticized the opaque nature of the license application process.