Tipp24 AG's appeal to the German Federal Court has failed

Tipp24 AG's appeal to the German Federal Constitutional Court on restrictions to its business activities created by the State Treaty on Gaming (see previous InfoPowa reports) has failed, according to a statement from the company this week.

Tipp24 had argued against provisions of the Treaty which interfered with Internet brokerage lotteries and permits, banned Internet lottery advertising and localised restrictions by two of the 16 German states (Berlin and Lower Saxony) party to the Treaty.

The second Chamber of the First Senate of the Federal Constitutional Court decided against Tipp24 on 14 October 2008, informing the company this week of its ruling not to accept a constitutional complaint.

The court reasoned that "the severe interference with the constitutionally protected freedom of profession was justified and reasonable in view of the legislative intent to prohibit and combat gambling addiction."

The court's decision did not address the compatibility of the State Treaty on Gaming and the subsequent position of state legislation with European Law, which had been questioned by several Administrative Courts in the past.

The Administrative Court of Berlin had already declared the Berlin state legislation, which was a subject-matter of the Federal Constitutional Court's decision, as inapplicable in its decision of 22 September 2008, and it is likely that this decision was based on the prevalence of European Law over German national law.

The reasons for this decision of the Administrative Court of Berlin, which has been appealed by the State of Berlin, are not yet available.

Tipp24 AG spokesmen say the firm continues to be convinced that the Treaty on Gaming and the subsequent legislation of the Federal States violate prevailing European Law.

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