News
EU Countries Can Lawfully Ban Online Gambling
Wednesday, 09 June 2010 08:44
A new ruling from the European Court of Justice based in Luxembourg paves the way for individual EU countries to legally ban online gambling.
Countries that are part of the European Union have been given the green light, if they wish to ban online gambling and thus prevent companies based in other EU countries from operating or providing their services within their borders. Until this ruling, there has been a long running debate over the question of whether a ban on online gambling constitutes a violation of the free trade agreements set up within the EU.
While all other forms of trade must be allowed to operate freely within the EU, this ruling now makes the exception for online gambling. This has naturally angered some big players within the industry for whom it may prove costly in terms of lost revenue.
The ruling came about following legal action taken by the Dutch gambling site De Lotto against British firm Ladbrokes in an attempt to prevent them from offering their services in Holland. The case was heard by the Dutch Supreme Court which, unsurprisingly ruled in De Lotto's favour. Ladbrokes naturally appealed and the case went all the way to the EJC in Luxembourg in order to get a firm and final ruling. At the same time, the EJC was hearing a similar case between the Dutch Authorities and Betfair.
The outcome from both cases was that the EJC decided the Dutch authorities were acting lawfully and that any EU country has the right to prevent companies based in other member countries from providing their online gambling services to citizens as a way of combating fraud and protecting players.
This ruling means that despite the fact that Holland's gambling laws in effect provide their state run gambling companies with a virtual monopoly, there is nothing that can be done. This ruling means the Dutch have the lawful right to prevent unlicensed, foreign run gambling websites from operating within their country's borders.
Reuters have said of the ruling that it is a real blow to the huge, multi-billion euro industry which seeks to break down such domestic monopolies. With so much potential revenue at stake, it is unlikely the industry will simply lie down and roll over without a fight. In fact, the industry's initial reaction to this issue sends the clear message that it is however, far from over.
