Bwin and MyBet launch litigation against Schleswig Holstein

The new government of the Schleswig Holstein province in Germany may well be considering plans to turn its back on internet gambling and re-join the German Treaty , but it will in the meantime have to contend with law suits from MyBet and Bwin.Party based on allegations of unreasonable delay on the issuing of online gambling licenses under currently friendly provincial law.

The two companies are among several that have been impatiently awaiting the issue of licenses for some months from a new governing coalition regime in SH.

That regime would prefer to revert to pre-liberalisation laws in the maverick province and return to the monopolistic Treaty with the other 15 German states, but it is concerned that such a move could result in very expensive lawsuits from major companies it has already licensed, or by those in the 49-company pipeline which have every right to expect approval under current law.

The situation represents a classic politics vs. business confrontation that could slow down the SH coalition government’s retrogressive plans to rejoin the restrictive Treaty, and successful lawsuits by Bwin.Party and Mybet could encourage other aggrieved companies to follow suit.

Exacerbating the issue from the SH political viewpoint is the position being taken by the European Commission, which has reservations about the restrictions imposed by the German Treaty, but has approved the current SH law providing the fair, equitable and non-discriminatory regulation and licensing of online gambling companies.

This week news emerged that Schleswig Holstein’s rulers are pushing for a late August reading of approval and repealing legislative acts aimed at changing the status quo; how far that already delayed process gets will be monitored with interest.

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