ANOTHER GERMAN BREAKAWAY STATE ON GAMBLING ISSUE?

Tuesday, September 27, 2011 :  Strong rumours circulating that Saxony may join Schleswig Holstein in doing its own thing
 
The German state of Schleswig Holstein, which recently broke away from the other 15 German states to run its own EC-approved online gambling regime, could soon be joined by Saxony, according to rampant speculation in the German market this week.
 
The German states are experiencing difficulty in renewing their gambling treaty, which has hitherto proved to be monopolistic and highly restrictive, incurring criticism from the European Commission.
 
The latest compromise, proposed in a bid to break the inter-state deadlock, could see the states abandon proposals which might have legalised and regulated the online gambling sector. If an agreement is reached on that basis, it could prove the death knell for hopes of legalised online poker and casino operations, according to analysts following the negotiations.
 
The 15 remaining states in the treaty could be reduced to 14 if such a compromise is agreed, as Saxony is known to have a more liberal and progressive approach to online gambling. Its departure would dilute the influence of the treaty substantially, some analysts have opined.