The European Court of Justice (ECJ) has stated that the German laws protecting gambling monopolies were “unjustifiable”.

The ruling will open up the way for foreign betting companies to establish a presence in Germany. A group that is representing PartyGaming and Bwin called the judgement a “landmark”

While the rules in effect were to do with the sports betting the implications are likely to have effects on all forms of gaming including bingo. German authorities had previously justified the monopoly position by saying it helped to protect consumers.

The ECJ suggested this was inconsistent with the "intensive advertising" of its gambling operations. It added: "The German rules on sporting bets constitute a restriction on the freedom to provide services and the freedom of establishment.

"The public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the objective of combating the dangers of gambling in a consistent and systematic manner."

The sports betting market in Germany, including high street bookmakers and online sportsbooks is worth an estimated 7.8 billion euros. It is suggested that half the bets however are placed at unlicensed internet sportsbooks. Now the ECJ has made its decision the German government are likely to replace the existing monopoly with a licensing and regulation scheme. It makes sense as much of the money spent on sports betting could be kept within the German economy, and the Government could benefit from taxes on licensed operators.

“The current state monopoly on sports gambling is fundamentally flawed,” Mutschler, chief executive officer of VfB Stuttgart Marketing GmbH added. “A controlled, licensed sports betting market should be introduced.”

Such changes are likely to have an impact on all forms of gambling. No doubt the Government will be keen to review legislation in light of the decision and will be looking at its European colleagues and the new legislation they are adapted to licensed online gambling.

The ruling was also welcomed by the European Gaming and Betting Association. In a statement it said: "This is a landmark ruling which will have a decisive impact on the much needed reform in Germany."

"Other member states have opened or are opening their markets... They show that consumers can be better protected in a market that is both regulated and open to competition."

"The court pointed again to the higher risks associated with internet gambling." This again supports the idea that online all online gambling will be licensed in the future.