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Implications for Online Casinos

The newest case ruling out of the European Court of Justice has set the European and UK online casino gambling industries on edge. The ECoJ, the highest authority in Europe has firmly ruled that there are circumstances under which EU member-states can block foreign licensed gambling sites. Previously online casinos such as Ladbrokes and Betfair have stood on the European Commission’s recommendations that the internet gambling industry was ruled under the single-market EU policies. The new ruling adds an unwelcome twist to the situation and has left both Ladbrokes and Betfair struggling on their next moves.

Both Ladbrokes and Betfair are two incredibly prominent EU/UK licensed online casino gambling companies. These companies currently operate in the Dutch gaming market despite the fact that the Netherlands has blocks in place designed to support a state run monopoly and keep out foreign competition. DeLotto is the Dutch monopoly and the company that took this current case all the way to the ECoJ. DeLotto claims that both of these online casino gambling groups are violating DeLotto’s exclusive granted rights to offer gambling within the Netherlands.

Ladbrokes and Betfair are aware of the Dutch monopoly policies and legislation and have continued to operate in the Dutch market because they claim that their European online casino licenses grant them the right to compete in any European market that offers legalized internet gambling. The highest court has now indicated that the Netherlands may actually have the right to block both of these companies if they can prove the action is for the safety of the market and not to protect state monopoly interests.