* German curbs applied inconsistently - ECJ
* No justification for monopoly - ECJ
* Gambling lobby EGBA welcomes ruling
By Foo Yun Chee
LUXEMBOURG, Sept 8 (Reuters) - German gambling restrictions breach European Union law, Europe's highest court said on Wednesday, giving a rare victory to companies seeking to break domestic monopolies in a lucrative industry. Ruling on three cases referred to it by German courts, the European Court of Justice found that while monopolies were sometimes justified, Germany's actions to promote gambling were inconsistent with its goal of protecting consumers.
"The German rules on sporting bets constitute a restriction on the freedom to provide services and the freedom of establishment," the Court found, adding:
"The public monopoly of the organisation of sporting bets and lotteries in Germany does not pursue the objective of combating the dangers of gambling in a consistent and systematic manner."
It said intensive advertising campaigns by the German monopolies and policies to encourage casino games and automated games -- all designed to maximise profit -- were inconsistent with objectives to protect the public interest.
"In such circumstances, the preventive objective of that monopoly can no longer be pursued, so that the monopoly ceases to be justifiable," the Court said.
The European Gaming and Betting Association (EGBA), a lobby whose members include PartyGaming and bwin, welcomed the ruling.
"This is a landmark ruling which will have a decisive impact on the much needed reform in Germany," Sigrid Ligne, the organisation's secretary general said in a statement.
"Other member states have opened or are opening their markets ... They show that consumers can be better protected in a market that is both regulated and open to competition."
European Lotteries, an umbrella group for licensed national lotteries in 40 countries, said the ruling did not, however, pave the way for liberalising the multi-billion-euro industry.
"Contrary to how proponents of a liberalisation would like to interpret these rulings, the Court today did by no means advocate a liberalisation of gambling," said Friedrich Stickler, the head of the group.
"On the contrary, the Court reminded Germany that it has to control more strictly the offer of dangerous forms of gambling such as casino games and gaming machines. The Court also pointed again to the higher risks associated with internet gambling."
In earlier verdicts, the ECJ said governments could restrict gambling even though such bans violate EU laws on the free movement of services and the freedom of establishment as long the curbs are designed to protect consumers or prevent fraud.
The ECJ will rule on a similar case challenging Austrian gambling restrictions on Thursday.
(Reporting by Foo Yun Chee; Editing by Erica Billingham)