EU Court Scrutinizes German Lottery Regulations

The future of Germany's online lottery and casino regulations hangs in the balance as the EU's highest court weighs in on their compatibility with European law.

Key Takeaways:

• EU court hearing on legality of German gambling restrictions
• Case examines state monopoly and online betting bans
• Ruling could impact Germany's lottery and casino landscape

The Court of Justice of the European Union (CJEU) has begun deliberations on a case that could reshape Germany's online gambling sector. At the heart of the matter is case C-440/23, which scrutinizes whether Germany's current regulations align with EU law.

The case, brought forward by Malta's Prim'Awla tal-Qorti Ċivili, focuses on two main aspects of German gambling policy: the state-run lottery monopoly and the previous prohibition on online casinos prior to July 2021. A key point of contention is the ban on unlicensed operators offering secondary lottery bets, which some argue infringes on Article 56 of the Treaty on the Functioning of the European Union (TFEU).

This legal challenge stems from a dispute involving a German lawyer seeking reimbursement for a player who lost stakes on secondary lottery bets with Lottoland. The court's decision will hinge on whether Germany can justify its restrictions on online betting, particularly concerning state lotteries, as a measure of consumer protection.

Another crucial element under examination is the legal distinction between state-operated and privately-run lottery betting. The court's ruling on this matter could have far-reaching implications for the structure of Germany's lottery market.

Industry experts are closely watching the proceedings, with the Advocate General's opinion expected on 10 July 2025. This opinion, while not binding, often influences the final judgment of the court.

Representing the case were Philippe Vlaemminck, Managing Partner at Vlaemminck.law and EL Legal Advisor, along with colleagues Beata Guzik and Valentin Ramognino. Vlaemminck referenced recent statements by CJEU President Koen Lenaerts regarding the social role of public lotteries, potentially hinting at the broader context the court might consider.

As the EU court deliberates, stakeholders in Germany's lottery and casino industries await a decision that could significantly alter the regulatory landscape. The outcome may not only affect German operators but could also set a precedent for online gambling regulations across the European Union.