Casino News: German TV online gambling channel folds

On 1st of August last year, hopes were high for a new TV gambling channel in Germany launched by Paybox Premiere in cooperation with Magna Entertainment and Betandwin, but this week the venture folded due to the potential impact of the UIGEA on U.S. partner Magnabet and the uncertain legal climate in Germany, U.S. and rest of the world.

The entertainment publication Variety reported that Paybox Premiere is pulling the plug on the much ballyhooed gambling channel "....due to the legal uncertainty of gambling offerings in Germany and in U.S." German provincial heads are currently mulling over what course they should take on the legal acceptance or otherwise of online gambling, fuelling uncertainties in the industry already caused by the October enactment in the United States of legislation that seeks to disrupt financial transactions with online gambling companies after Bush signed the unlawful gambling bill two months ago.

International online gambling companies have suffered an autumn of discontent after the U.S. Congress passed legislation prohibiting the use of credit cards, checks and electronic fund transfers for online gaming in October.

In Germany, three federal states have imposed bans on commercial betting, making the overall gaming market a risky venture.

Premiere is said to be looking for another partner in order to continue the channel, but local industry observers have opined that with German lawmakers unlikely to loosen gaming laws, a new channel may be severely restricted.

The end of Premiere Win is the latest blow to Premiere, which is facing growing competition from upstart pay TV and video-on-demand operators and was forced to stomach the loss of top league Bundesliga soccer.

The online gambling industry is surely facing one of its unsure phases since 1996, this “wait and see” situation becomes a problem when new ventures would like to build a long term investment in any gambling related initiative.