LONDON – (PRESS RELEASE) -- The Federal Constitutional Court of
Germany declared the state monopoly on sports betting unconstitutional in its
widely publicised ruling on March 28th 2006.
Operating the monopolistic "Oddset" without even minimal checks and
balances to prevent addictive gaming was declared a violation of the
constitutional right of freedom of occupation for aspiring sport betting
bookmakers. The monopoly could be upheld only if measures to combat addictive
gaming were introduced and enforced immediately. The ruling was very specific
about appropriate measures. In essence, in the view of the Deutsche
Buchmacher Verband (DBuV; German Bookmaking Association), Oddset's full
compliance with these measures is only theoretically feasible but practically
impossible.
Two broad scenarios for the future were outlined: One, German legislators
come up with new regulation to liberalize sports betting. Two, the monopoly
will be upheld and Oddset has to align its offering completely with the goal
to prevent addictive gaming and abandon all fiscal interests. Betbull's
Directors believe that due to overwhelming public demand for regulated and
professionally run sports betting that the legislators will decide to
liberalize the market.
The legislators were given a period until December 31st 2007 to provide
the regulatory framework for sports betting in Germany. Until new regulation
becomes effective current German law and rulings remain in force. In the view
of the Verband Europaischer Wettunternehmer (VEWU; Association of European
Betting Operators) this part of the ruling has caused some confusion, as it
is not a "carte blanche" to close down betting shops and prosecute sport
betting agents at will. Although the ruling states that specifically for the
state of Bavaria sports betting operations may be shut down according to
existing German law it also emphasizes that it takes no point of view on the
compatibility with laws of the European Union. But, according to VEWU, the
laws of the European Union are violated and the application of these laws
takes precedent over the application of German law, meaning: should the
authorities shut down betting shops on the basis of German law the operators
can go against this action on the basis of the laws of the European Union. In
essence, as the DBuV puts it: "After the ruling is before the ruling".
Suffice to mention that the Betbull-Group has only three shops in Bavaria
and accepts bets from one agent. No actions have been taken against these
shops as of March 29th. The ruling has no negative impact on the licensed
horse racing business of the Betbull-Group.
In summary, the Directors and their advisors believe that the current
laws of the European Union are material in the defence against rush actions
by the authorities, in particular, when it comes down to keeping betting
shops open or getting them reopened.
The Betbull-Group together with the various German and international
bookmaking bodies of which it is an active member will rally massive support
to convince the legislators of the need of liberalizing the sports betting
market.
Gunter Schmid, CEO of Betbull: "After seven years of betting with Oddset,
lacking even basic means of protection against addictive gaming, it is the
bettors who deserve a fresh start, i.e., a liberalized and professionally
operated sports betting offering. They will be the winners of this landmark
ruling of the Federal Constitutional Court of Germany."
Betbull will publish its figures for the year 2005 as scheduled on March
31st 2006.
