Germany: Schleswig-Holstein Mulling Cancellation Of Gambling Licenses

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Germany Online Gaming Licensing, Possible Threat of Cancellation

It seems as though the crusade to bring regulated online gaming to Schleswig-Holstein has been squashed by the recent state’s decision to revert to the State Treaty on Gaming and to cancel online gaming licenses issued by the previous government.

The state’s new coalition government declared, “it is the goal of this government for Schleswig-Holstein to join in national gaming regulations”.

“The government aims to put in place gambling regulation which is harmonized across all Länder and to join the State Treaty on gambling. The government will examine how the SH gambling law may be repealed without giving rise to compensation claims and how it may be possible to amend the [Schleswig Holstein] gambling law in line with competition law in order to stop the issuing of licenses.”

A little over a month ago, Global Betting and Gaming Consultants’ Director Lorien Pilling, predicted something of this sorts would happen, stating,

“The gambling licences issued by Schleswig-Holstein could be some of the shortest awarded in history if the SPD forms the next government. The three operators might argue that they have been awarded licences until 2018 but governments make the rules and can reposition the regulatory goalposts to suit their agenda. If the SPD really wishes to repeal the regulation, nullify or restrict the licences it will find a way to do so”

“The e-gaming sector desperately needs some regulatory certainty in Germany, not just in Schleswig-Holstein. Unfortunately, Schleswig-Holstein’s election results have seemingly confused matters in the one German region where internet gambling regulation had at least been passed.”

Mathias Dahms, CEO of mybet Holding, one of the seven companies to have been awarded a licence in Schleswig-Holstein said the operator would “continue to expand” its German business on the basis of its licence approval last month.

“In the coalition agreement the new governing parties in Schleswig-Holstein have merely agreed to find a way how to stop the granting of additional licenses. It is not the question of the licenses already issued to be revoked – what anyhow would be difficult to enforce legally and would of course imply claims for indemnification,” he said.

“Furthermore, the parties agreed to consider joining the questionable draft of the other 15 states, although the treaty is legally highly questionable compared to European law. Our Schleswig-Holstein license will remain valid in any case,” Dahms added.

Betfair, another online operator that was issued a license provided the following statement,  “Schleswig Holstein’s licensing model will foster a genuinely competitive and vibrant online market that will benefit government, consumers and operators alike. Unlike the proposals of the other 15 Lander, Schleswig Holstein’s regulation is EU-compliant and we remain hopeful working with the new coalition government to ensure we are operating there, under the licence already awarded to us, in the near future.”

http://www.casinoscamreport.com/2012/06/09/germany-online-gaming-licensing-possible-threat-of-cancellation/

In a dramatic change of heart, the German state of Schleswig-Holstein may repeal its new laws governing online gambling licenses and join Germany's other 15 states in the State Treaty on Gaming.

The changes come about after the state's new coalition government stated that "it is the goal of this government for Schleswig-Holstein to join in national gaming regulations."

As a reminder, Schleswig-Holstein began issuing its first online gambling licenses last month, with Bwin.Party online gambling operator the latest group to receive one.

Earlier in May, licenses were awarded to Betfair, NorwestLotto and Jaxx, while Bet365, bet-at-home and Tipico were all awarded sports betting licenses.

These licenses are now directly under threat should Schleswig-Holstein choose to join the other German states.

It has been reported that the coalition has asked legal professionals to check whether repealing the e-gambling licensing laws could result in damage claims by online gambling companies.

Bwin.Party German Licence Under Threat

Bwin.Party's online gambling license means that the group is allowed to operate an online sports betting platform for six years. In return, Bwin.Party (as well as other license holders), will need to pay a 20% gross gaming tax to the state authorities.

At the time of receiving the license, the co-Chief Executive Officer for Bwin, Norbert Teufelberger said: "Schleswig-Holstein's regulatory regime represents an important step in building a vibrant and competitive German online market. This EU compliant regime is a fundamentally important step to protect consumers and keep out black market operators in Germany."

JAXX Warns Schleswig-Holstein

Another group whose online gambling license is in jeopardy is JAXX, the German gaming operator.

In an interview, a spokesman for the group said: "JAXX warns the new Schleswig-Holstein coalition government not to join the State Treaty on gaming with the other 15 Lander. The regulation is a flimsy political compromise, fails to meet its purpose of channeling online gaming completely, and will fall apart legally as it does not meet EC standards."

"As sole Bundesland, Schleswig-Holstein has created an EU-compliant framework for the regulation of gaming, which has been aligned along accepted European standards and which has been approved by the EC. There is no reason to deviate from this secure road and to be lured onto think ice by the other Lander," he added.

Not surprisingly, others have welcomed the German states cancelling the gambling licenses, with one opponent even saying that the state's individual path had always been considered "a thorn in the flesh".

http://www.gamblingkingz.com/news/2012/06/08/german-state-mulling-cancellation-of-gambling-licenses.asp