Regulatory Developments
Germany
Despite criticism from the Commission that it was in breach of EU law, Germany passed the Interstate Gambling Treaty on 1 January 2008. The Treaty effectively provides that all forms of online gambling are unlawful where they are targeted at German residents.
However, the Treaty was immediately subject to infringement proceedings by the Commission in light of its apparent incompatibility with EU law, notably the fact that there was no obvious justification for Germany to close the online market and restrict gambling activity within Germany to state monopolies. Whilst enforcement action against operators where they actively target German residents (including through local marketing and even operation) has been curbed due to the lack of clarity in this legal position, there can be no guarantee that enforcement action will not occur.