Germany's Online Gambling Ban Takes Effect January 1

Berlin, Germany (AHN) - Online gambling will be prohibited throughout Germany by January 1. The ban is a result of a mid-December vote by all 16 German state legislatures not to allow any form of Web-based gambling or brokering of games over the Internet.

It even covers placing a bet from Germany to a gaming company outside the country. The new rule grants states the power to order Internet service providers to block websites that promote illegal betting and to order banks to stop money transfers for gambling-related transactions.

The ban is expected to be fought by online gaming operators like Bwin Interactive Entertainment, Fluxx and Tipp24. The operators claim the ban is contrary to law. Tipp24 plans to file a lawsuit if necessary., while Bwin filed on October suits against 4 German states. The cases are pending.

The affected online gaming firms are seeking a relief from the European Court of Justice, said Bwin spokesman Hartmut Schultz. The European Commission has called on Germany to reconsider the total ban, but Germany turned it down saying regulations are needed to protect citizens from gambling's ills.

So far 13 out of 16 German states have submitted the ban for ratification, said Eric Braum, spokesman for the Hesse state.