A German Federal Court ruling due later this week could provide some indication as to whether the ban on online lottery sales under Germany’s Interstate Gambling Treaty will come into effect as scheduled next year. Private lottery distributors, already suffering under the Treaty, are banking on obtaining legal protection from the Treaty’s full scope.

Two private German lottery operators have won a victory in their case against the activities of the state lottery cartel. While the decision is unlikely to halt the further implementation of the Interstate treaty in January, the prospect of a hefty compensation claim may cause the cartel operators to reconsider their approach.

A Berlin court ruling has boosted the hopes of private lottery distributors in Germany seeking protection from a ban on online lottery sales scheduled to take effect in January of next year, legal observers agree.

Europe and Germany are eagerly awaiting the ECJ judgments relating to eight referred gambling cases, in the hope that some clarity will be provided on the legal status of the country's monopolistic, state-based, and often prohibitory approach to gambling regulation.

The Higher Regional Court in Dusseldorf has upheld an earlier ruling of August 2006 that the Deutscher Lotto - und Totoblock's regionalised division of the German lottery market constitutes a violation of both European and German law.

Still reeling from a failed challenge to the German Interstate Gambling Treaty, Tipp24 released its latest results showing turnover up, but operating profits down heavily on greatly increased costs. The company also announced it had won an online gaming licence in Italy.

Analysts and legal experts expect the ECJ’s ‘Bwin Liga’ ruling will act to further freeze out those private internet gaming operators still active in the German market, but the country’s state monopolies may await further clarity from the European Court next year before expanding their own presence to the web.

A decision upholding the validity of Bwin’s old East German sports betting licence to offer internet betting could shelter the company from the worst effects of the impending ban on all internet gambling in Germany established by the Interstate Lotteries Treaty, according to one expert. However, the latest decision adds further speculation to exactly how the treaty will be applied in Germany in early 2008.

With pressure growing from both its national courts and the European Commission to determine a coherent gambling policy, politicians charged with steering Germany towards new gambling legislation are showing signs of denial.

Challengers to Germany’s Interstate Gambling Treaty are running out of options in the country’s domestic court system, legal observers warn, as state gaming authorities continue to take steps to lock out foreign online gaming firms ahead of crucial European Court of Justice (ECJ) cases due to be heard next year.