Federal court upholds German gambling ban

As Germany's 16 states draft new legislation to outlaw all online gambling, the country's top court has rejected a legal challenge to existing Internet wagering bans.

An online bookmaker, which was not named in the court proceedings, was fighting a 2004 ruling that disallowed betting over the internet. The company referenced a 1990 law from Communist East Germany that permitted wagering.

The decision comes after German state leaders decided to shelve a decision establishing an outright ban on all forms of Internet gambling.

If passed, the law would prevent offshore gaming companies from accepting German players or conducting business in Germany. Three states have already passed similar laws of their own.

The law is part of an effort to protect local monopolies and lotteries, which is being discouraged by the European Union in an effort create an equal playing field among member nations.

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