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Bookmaker Bwin under German fire
Germany - 22 August, 2006
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Online bookmaker Bwin is trying to maneuver its way through German courts, as large sums of money are at stake for both the bookmaker and German football clubs.
On August 10, the eastern state of Saxony revoked Bwin's license, prohibiting the Austrian-based company from advertising in Germany . The Saxon interior ministry also announced that every German state is obliged to respect this decision.
The decision left the Bundesliga club Werder Bremen and second-division club 1860 Munich, in a pinch because Bwin is its jersey sponsor. Bremen and 1860 Munich however surprised, and are playing with alternative kit with "we win!" pasted on their chests, in the font of Bwin.
The alternative kit is one example of the measures Bwin is taking in the current legal fight. The company also sponsors thousands of amateur clubs by providing them with inexpensive jerseys, naturally with the Bwin logo splashed across the front. Even for those shirts, harmlessly being worn by weekend footballers, an iron-on "we win!" patches are being provided so no player can be prosecuted.
"By doing that we are taking the clubs out of the authorities' line of fire," said Jorg Wacker, Bwin's marketing director.
Not only is Bwin's presence at sporting events on the line in this struggle between a state monopoly and the proponents of liberalized gambling laws. The Internet gaming company spends close to EUR 56 million on advertising, a large part on football, but also on other sports as basketball and handball, whose associations use the money for youth programs.
Television networks also might find large holes in their budgets. The German sports broadcaster DSF has reported that 15 percent of its revenue stem from bookmakers.
Should the ban be upheld, then the marketers at Germany's only all-sports TV network will be putting in overtime hours looking for new advertisers.
To overturn the decision, Bwin has taken the matter to administrative courts around Germany, but the European Court of Justice - which has already ruled in favor of an Italian online bookmaker in a similar case, may have the final word.
On August 10, the eastern state of Saxony revoked Bwin's license, prohibiting the Austrian-based company from advertising in Germany . The Saxon interior ministry also announced that every German state is obliged to respect this decision.
The decision left the Bundesliga club Werder Bremen and second-division club 1860 Munich, in a pinch because Bwin is its jersey sponsor. Bremen and 1860 Munich however surprised, and are playing with alternative kit with "we win!" pasted on their chests, in the font of Bwin.
The alternative kit is one example of the measures Bwin is taking in the current legal fight. The company also sponsors thousands of amateur clubs by providing them with inexpensive jerseys, naturally with the Bwin logo splashed across the front. Even for those shirts, harmlessly being worn by weekend footballers, an iron-on "we win!" patches are being provided so no player can be prosecuted.
"By doing that we are taking the clubs out of the authorities' line of fire," said Jorg Wacker, Bwin's marketing director.
Not only is Bwin's presence at sporting events on the line in this struggle between a state monopoly and the proponents of liberalized gambling laws. The Internet gaming company spends close to EUR 56 million on advertising, a large part on football, but also on other sports as basketball and handball, whose associations use the money for youth programs.
Television networks also might find large holes in their budgets. The German sports broadcaster DSF has reported that 15 percent of its revenue stem from bookmakers.
Should the ban be upheld, then the marketers at Germany's only all-sports TV network will be putting in overtime hours looking for new advertisers.
To overturn the decision, Bwin has taken the matter to administrative courts around Germany, but the European Court of Justice - which has already ruled in favor of an Italian online bookmaker in a similar case, may have the final word.
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