Europe's gaming industry filed a complaint with the European Commission yesterday, saying Germany's ban on online gambling breaks EU law on the free movement of services.
"The European Gaming and Betting Association (EGBA) calls on the European Commission to take swift action against the German Interstate Treaty on gaming," the lobby group said in a statement.
The treaty came into force on January 1 and bans online gaming and betting, except for horse races, in Germany.
The EGBA said the ban "is in direct contravention of EU law."
"The German Interstate Treaty is incompatible with EU law, and its adoption has left us with no other choice but to make a formal complaint to the European Commission," said EGBA secretary general Sigrid Ligne.
"We urge the Commission now to fast track our complaint and launch infringement proceedings against Germany," Mr Ligne said.
EU Internal Market Commissioner, Charlie McCreevy, has sought to crack down on cross-border hurdles to competition in the gambling sector but has faced opposition from countries such as France.
The EGBA is an association of the European gaming and betting operators, including Bet-at-home.com, bwin, Digibet, Carmen Media Group, Expekt, Interwetten, PartyGaming and Unibet .