News

Monday, 11 May 2009 04:16

The refusal of the government of Holland to adopt principles set out by the European Union regarding online gambling has got them into hot water with the EU Markets Commission.

An investigation has been launched by the European Commission into the possibility of their non-compliance with requirements associated with the EU treaty in an attempt to protect its own state monopoly on gambling. This follows hot on the heels of a legal attack launched by Betfair.

European internal markets commissioner Charlie McCreevy, has openly criticised the Netherlands over their protectionism for their own state lotto and treatment of outside Internet gambling operators. McCreevy has warned the Dutch government that will pursue them to the European Court of Justice if necessary following their attempts at blocking payment processing of bets taken over the Internet by Dutch banks.

Mr McCreevy has said that he believes that Holland are directly contravening internal markets rules by adopting protectionist approaches to gambling of all forms. He has launched a full scale investigation into this matter.

The British company Betfair had filed a lawsuit last week against Holland’s Ministry of Justice. They allege its attempts to block online payments have constituted what they describe as "a desperate move" in order to protect the state monopoly, De Lotto. The ministry contacted banks by letter urging them to terminate their relationships with online gambling operators.

The Dutch government department has claimed that it is inappropriate that banks provide facilities to companies that provide games of chance that are illegal. This is because there are no laws in Holland allowing licensing for Internet gambling operators.

Betfair has claimed that it is lawful to accept bets being a licensed operator within Europe in addition to the fact that residents in Holland may place bets online with the state’s De Lotto. 

McCreevy has taken on several European governments on the issue of protectionism towards gambling in all forms over the years and last year announced that ten member states contravened internal market rules with regard to gambling. While many of those members have bee brought to bear, the Dutch have remained adamant they are within their rights to take this action. The investigation continues.