Last Tuesday the Hanover administrative court threw out the suit against lower Saxony instituted by Bwin, Austrian online gambling giant. The suit was targeted at overturning the 2007 German ban against offering internet gambling to players in Lower Saxony.

This is the second strong blow for Bwin this month. Earlier the company lost a similar case in north Rhine-Westphalia. Bwin relies on Germany for a third of its sales, looked for courts in that state that would suspend execution of the prohibition till a federal court could solved the case. However, Rhine-Westphalia’s judges rejected the suit on 11 September.

Germany is one of the few remaining members of the European Union to ban on its territory online gambling with institutions and companies based outside Germany. Regardless of the fact that the ban violates EU trade agreements, foreign companies including Bwin keep on suffering since it was enacted by each German state individually, not by federal government of Germany.

The prohibition gives an exclusive monopoly to the countriy’s state-run lotteries. Approved by all 16 states of Germany in 2007, it was renewed this January despite EU mandates that require the free movement of goods and services through EU members. So, EU regulators have started proceedings against Germany.

Courts in Hesse and Bavaria have supported Bwin’s right to operate inside state borders stating that it would be impossible for the company to locate its customers.

Kevin O’neal, Bwin spokesman stated this ruling did not correspond to EU law. The company will appeal the ruling in lower Saxony and they are sure that EU law will be adhered finally.

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