The leaders of Germany's 16 states have unveiled a proposed State Treaty on Gaming which is seen by most operators as being so out of touch with market realities and counterproductive that it will most likely lead to a further expansion of the country’s unregulated gambling market.

At a special meeting held yesterday in Berlin, the German heads of state agreed in principle on the new draft State Treaty on Gaming to replace the current Treaty which expires at the end of 2011.

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