Dutch authorities have won ECJ support for a local online gambling monopoly and restrictions against foreign operators.
Advising on cases brought by Ladbrokes and Betfair against Dutch monopoly operator De Lotto, European Court of Justice (ECJ) Advocate-General Yves Bot has reaffirmed the view espoused recently in the Bwin case. That is, when it is in the public interest to do so, EU Member states may grant local monopoly operators exclusive rights to provide online gambling services to the exclusion foreign operators.
Both Ladbrokes and Betfair were arguing that such restrictive practices were a violation of European freedom of services provisions - an argument that seemed to have the support of the European Commission and even the ECJ up until recently. But the Bwin case in Portugal, and now this outcome signals growing judicial support for closed EU I-gaming markets - a trend that must have some of the larger gaming operators a little worried.
The key rulings of the Advocate General were that:
1. The Dutch Government could grant De Lotto single online gambling rights in the Netherlands.
2. EU Member states are not required to recognize online gambling licenses held in other EU Member States.
3. Where an extension to existing Monopoly operator services is granted, there must be an open and competitive tender for provision of these services.
While Advocate General's decisions are not binging on the full court of the ECJ, in most instances they are followed.