Ladbrokes loses fight for Dutch net bets

Published on Thursday 3 June 2010 20:11

LADBROKES and Betfair have lost a battle with the Dutch gaming authorities over their right to accept internet bets from punters in Holland.

The European Court of Justice yesterday upheld an injunction imposed against the two barring them from offering online gaming to Dutch customers.

Gambling on sporting events in Holland is controlled by the non-profit making government-backed De Lotto, which uses money raised to pay for sport, physical education, public health and culture.

The European Court of Justice acknowledged yesterday that Dutch gaming legislation is technically a restriction on EU rules guaranteeing freedom to provide services. But it said such a restriction "may be justified by the objectives of consumer protection and the prevention of both fraud and incitement to squander money on gambling, as well as the need to preserve public order".

In the absence of EU-level harmonisation of the online gaming industry, it was up to national authorities to decide whether to take measures to protect their consumers, the judges said.

"A member state is therefore entitled to take the view that the mere fact that an operator such as the Ladbrokes companies lawfully offer services in that sector via the internet in another member state is not a sufficient assurance that national consumers will be protected," said the judgment.

John O'Reilly, managing director of Ladbrokes eGaming, said: "(The ruling confirms the need for its replacement with a system that incorporates strong regulation and licensing, but also introduces competition for the benefit of consumers. Other EU countries have introduced new licensing and regulation systems that embrace competition – it is now time for the Netherlands to do the same."

Betfair's director of European public affairs, Tim Phillips, said: "Until we get a clear lead from the Commission, gambling consumers will continue to be told that their preferred leisure activity is the only one in Europe which doesn't benefit from an open market."