Wednesday, December 4, 2024

EU court says countries can ban online gambling – Stabroek News

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LUXEMBOURG, (Reuters) – EU countries can ban online  gambling if their aim is to combat fraud, Europe’s highest court  said yesterday, dealing a blow to the multi-billion euro  online betting industry seeking to break domestic monopolies.

The European Union Court of Justice (ECJ) issued rulings on  two separate challenges involving online gambling in the  Netherlands.

De Lotto, a Dutch non-profit-making foundation which offers  games of chance, had asked a Dutch court to stop residents from  using British bookmaker Ladbrokes’ online gambling operation as  it was not licensed in the Netherlands.

Ladbrokes appealed to the Dutch Supreme Court after the  lower court backed De Lotto. And the Dutch Supreme Court asked  the ECJ in 2008 to rule whether the Dutch licensing system was  compatible with EU law allowing for the free movement of goods  and services across the 27-country European Union.

In the second challenge, Betfair, the world’s largest online  gaming exchange, took its case to a Dutch court after Dutch  authorities refused to grant it a licence similar to others  given to two Dutch companies. The court subsequently sought  guidance from the ECJ.

The ECJ backed the position of the lower Dutch court on  Ladbrokes.

“Such a restriction may be justified, in particular, 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,” it said.  It cited the same rationale for the Betfair case.

“The grant to such an operator of exclusive rights to  operate games of chance, or the renewal of such rights, without  any competitive tendering procedure would not appear to be  disproportionate in the light of the objectives pursued by the  Netherlands legislation,” it said.

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