CJEU reviews legality of Germany’s gambling laws

In a pivotal legal showdown, the Court of Justice of the European Union (CJEU) heard oral arguments today in case C-440/23, examining the compatibility of Germany’s gambling legislation with EU regulations.

This case, presented by Malta’s Prim’Awla tal-Qorti Ċivili, scrutinizes the constitutionality of Germany’s state-run lottery monopoly and its previously enforced prohibition on online casinos prior to July 2021. This legal challenge underscores the ongoing tension between national gambling frameworks and European Union directives aimed at fostering a competitive and fair marketplace.

Central to the legal dispute is Germany’s ban on unlicensed operators engaging in secondary lottery betting. This regulation raises significant questions regarding its alignment with Article 56 of the Treaty on the Functioning of the European Union (TFEU), which advocates for the unencumbered movement of services across member states. The impetus for this legal action originated when a German attorney, acting on behalf of a local bettor, sought restitution from Lottoland for losses accrued through secondary lottery wagers.

The CJEU will delve into whether Germany’s prohibition on private online lottery betting is defensible under the banner of consumer protection. Moreover, it will analyze the legal dichotomy established between public and private lottery offerings to ascertain its validity under the current EU legislative framework.

Legal advocates for the case include Philippe Vlaemminck, Managing Partner at Vlaemminck.law and legal counsel for European Lotteries, who presented arguments alongside fellow attorneys Beata Guzik and Valentin Ramognino. Their extensive expertise in this sector illuminates broader implications for the gambling industry across Europe.

Emphasizing the case’s societal implications, Vlaemminck cited remarks made by CJEU President Koen Lenaerts, who acknowledged the critical role that public lotteries play in social welfare. This recognition further complicates the dialogue surrounding private versus public sector gambling, driving home the need for a nuanced understanding of both market dynamics and consumer safety.

As this landmark case unfolds, it will not only affect the German gambling landscape but may also set precedents that influence broader EU gambling regulations. Stakeholders across the industry, from policymakers to operators, will undoubtedly monitor the outcomes closely, as they could reshape competitive practices within the gambling sector for years to come.