EU and judiciary criticise Dutch monopoly moves on gambling

20.12.2005

The Dutch authorities were under the spotlight this week by both the EU and its own judiciary in two issues.

In the first, European Commission Vice President Gunter Verheugen penned a warning that a plan to award Holland Casino with a three-year license to exclusively operate games of chance over the Internet as part of a state monopoly could cause trouble.

Verheugen's communication cautioned the Dutch against proceeding with a proposed monopoly scheme for online games of chance, and advised that such a policy would be incompatible with European Union regulations regarding freedom to provide services in other member states. The Netherlands courts have been the scene of bitter EU "sovereignty" litigation involving international betting groups in the past.

The second case, a ruling from the Netherlands Administrative Court of Breda has the potential to impact significantly on future gambling-related court rulings and policy decisions by the Dutch government.

The case revolved around government's claim that its state monopoly on casino gaming was coherent in achieving its intended goals. The court ruled that the Dutch Ministers of Justice and Economic Affairs had failed to prove their case, opening the way to further contest of the Dutch position that it has the right to exclude betting companies from other EU states from doing business with its nationals.

It is unknown whether the government intends to appeal the finding.