The European court of justice said on Thursday that the Netherlands is within its rights to ban internet gambling if the Dutch courts are satisfied the aim of the ban is to reduce crime and to discourage people from gambling.
The Dutch high court had asked the EU court for its opinion because British gambling groups are trying to enter the Dutch market, which is in the hands of the state-owned Lotto group.
‘Such a restriction may be justified, in particular, by the objectives of consumer protection and the prevention of both fraud and incitement to squander money on gambling, as well as the need to preserve public order,’ the court said in its ruling.
It is up to national courts to determine if the legislation is actually meeting these criteria, the court said.
British law
Ladbrokes and Betfair both claim they have a permit to operate under British law and do not need to apply for a Dutch licence.
But the court said having the right to offer gambling in one country is not sufficient guarantee that consumers in another country will be properly protected.
Betfair has been fighting for a licence to operate in the Netherlands since early 2008 and took the issue to the European court in 2009. Ladbrokes has been under fire from the Dutch government for illegally targeting Dutch punters.
