Betting companies to take legal action against German state monopoly on gambling

[clevfan]

AFX News Limited

Betting companies to take legal action against German state monopoly on gambling

12.31.07, 1:56 AM ET

FRANKFURT (Thomson Financial) - Online betting companies including BWIN Interactive Entertainment AG and Fluxx AG are gearing up to file a legal complaint against Germany's state monopoly on lotteries and most forms of betting, law firm Hambach & Hambach head Wulf Hambach told Die Welt newspaper.

Hambach said he represents about 20 of the world's biggest betting companies, according to the newspaper.

Germany's states earlier this month ratified an accord solidifying their monopoly on lotteries, online gambling and most forms of sports betting in Germany. The accord will effectively ban private betting companies from operating in the country from tomorrow.

'The accord breaches EU law because it excludes foreign betting companies with EU licenses from the German market,' Hambach said.

The newspaper also cited law firm Redeker's Michael Winkelmueller, who represents BWIN and Fluxx, as saying he expects to see legal action by all 3,000 betting companies active in Germany.

Germany's states have voted in favor of banning private sports betting companies until 2010, during which time they will develop a system by which private betting companies can obtain concessions.