The European powers of France and Germany both made news this week on the online casino gambling front.  While these powers remain engaged in the affairs of Afghanistan and Pakistan, Israel and Iran, there has also been some action for France and Germany in the area of online casino gambling. 

France inched closer to legalizing online casino gambling through private companies when its National Assembly approved the licensing of private companies for the express purpose of online casino gambling.  This legislation would also extend to online sports gambling.  At the present time, there are two government-run monopolies that handle all online casino gambling in the country. 

France would effect a 2% tax of these licensing companies for permission to conduct casino games that are considered to be “skilled” games and not games of pure luck.  Under this ruling, poker, sports betting and horse racing would initially be approved.  There are expectations that all online casino gambling will be approved at some point down the line.  France was recently warned by the European Commission that they are out of compliance with European Union Trade agreements as far as their online gambling laws are concerned.  With the approval of the National Assembly, the bill now goes to the French Senate for their endorsement.

In Germany, the gambling monopoly present in the country is coming under severe criticism from the European Commission, as well as German domestic courts.  One of the 16 states that comprise Germany, Schleswig-Holstein, has demanded the repeal of the German Interstate Treaty on Gambling, which blocks online casino gambling in the country from companies other than the German government. 

Germany has historically pointed out to the opposition that it is simply defending consumers, children and problem gamblers from the perils of Internet gambling.  However, it is a fact that the state revenue system is the only entity that receives protection under current German law, which profits from the illegal restraint of online casino gambling.  Only the sport of horse racing is currently permitted under German law.  If the German legislature does not respond to this whirlwind protest for economic freedom for online casino gambling, the monopoly will eventually be broken in 2012, when the German Interstate Treaty on Gambling expires. 

Both issues will be followed closely by Onlinegambling.co.uk in the coming months.