According to reports in German newspaper Handelsblatt, representatives from 16 German states were unable to reach an agreement on a focused approach toward online gambling this week. The premiers of each province met on Wednesday to discuss outlawing online gambling in an attempt to protect state gambling monopolies. Three of the states – Hesse, Saxony and Bavaria – each have current laws in place to protect local gambling interests.
However, despite the impasse state premiers found themselves at, legal experts are unsurprised that the attempt to ban online gambling nationwide has failed. If Germany chooses to ban its citizens from accessing online gambling sites, it could find itself in contradiction with European Commission law.  The EC is lobbying member states to liberalize local gambling markets rather than crack down on online gambling operators.
One gambling firm, Austria's Bwin Interactive, has strongly emphasized the need for a liberal approach to gambling and has praised the efforts of the EC. Previously the company was barred from operating in Bavaria,Hesse and Saxony when local authorities legislated against it in the attempt to protect state lotteries and state-owned betting agencies.

Steffen Pfennigwerth, Bwin Interactive's owner, has welcomed the failure of all 16 German states to agree to an outright ban. “This decision is a very sensible one,” Pfennigwerth said. “The states will now have sufficient time to develop a legal framework for the German betting market in accordance with European law and the constitution.”
The main reason for the states' failure to reach a common decision is reportedly reluctance when it comes to operating in an overly protectionist fashion. The leader of the state of Lower Saxony has been quoted as saying that any state treaty would have to first meet with the approval of the EC to check its compliance with EU obligations.

The Handelsblatt report went on to name the state of Schleswig-Holstein as being chiefly responsible for the defeat of the ban. The state declined the signing of the proposed legislation, which needed unanimous agreement to succeed. The remaining 15 states had already agreed "in principle" to the proposal. It is yet to be seen whether rumors hinting that the 15 states will try to pass the legislation without the co-operation of the premier from Schleswig-Holstein will come to pass.

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