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European Court of Justice rules on two Dutch gambling cases

Category: EU Updates

On 3 June, the European Court of Justice delivered its judgments on two Dutch cases involving remote betting operators Ladbrokes and Betfair. Upholding the previous opinion of Advocate General Yves Bot, the decisions reaffirmed the principle of subsidiarity allowing Member States to determine their own gambling policies. The Court acknowledged that Member States have the right to prohibit online games of chance without violating internal market rules if the objectives for doing so are to prevent fraud, protect consumers or ensure the public order. The ECJ also concluded that lawfully obtaining a licence to provide services in one Member State, does not provide “sufficient reassurance” that consumers in another Member State will be protected.

The rulings of the ECJ were in response to the Dutch Council of State request for guidance on a series of questions brought forth after the Dutch sports betting monopoly, De Lotto, sought injunctions against Ladbrokes and Betfair to prevent the companies from providing services in the Netherlands. The ruling will now be taken into consideration by the national government in the Netherlands before providing its own decision on the cases. However, the ruling of the ECJ will likely have a significant impact on the future decisions of the Dutch court. Additionally, the judgments expand on the foundation provided by previous ECJ cases which allow for Member States to determine whether foreign remote gaming operators can offer services in their territories.

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