The article investigates the attempt by the German legislator to monopolize the national gambling market. Since January 2008, the new gambling treaty aims to organize the gambling market in a well-regulated manner as well as to reduce gambling addiction. An analysis of the market structure reveals that the treaty lacks a reasonable economic justification. Moreover, an empirical investigation of current market practices shows that the prohibition of online gambling has led to various monopoly avoidance strategies on the part of both the German gambling industry and gamblers themselves. Finally, the new regulation faces various legal challenges with respect to the EU Services Directive. The article proposes an alternative regulation, which may overcome the current economic and legal difficulties.
© 2011 by Lucius & Lucius, Stuttgart