Key Moments:
- The European Court of Justice has dismissed the Netherlands’ attempt to halt an investigation into gambling license renewals
- The case originated in 2014 when the Dutch government renewed state operators’ licenses without an open tender
- The European Commission is now expected to resume its formal review of potential unlawful state aid
Background on the Dutch Gambling Dispute
In a case that has remained unresolved for years, the European Court of Justice has rejected an appeal from the Netherlands, ensuring that an investigation into the country’s gambling license procedures will proceed. The controversy centers on steps taken by the Dutch government in 2014, when it began opening its gambling market. Rather than conducting an open bidding process for new operators, the Dutch authorities renewed licenses for state-affiliated betting and lottery providers. The European Gaming and Betting Association (EGBA) argued that this decision effectively shut private companies out, creating an uneven playing field in favor of state-backed businesses.
Prolonged Legal Proceedings
The dispute has seen repeated legal and regulatory reviews. In 2020, the European Commission initially assessed the licensing renewals, but closed the case three years later. Dissatisfied, the EGBA appealed this closure, and the EU General Court ruled that the matter warranted further attention. The Netherlands responded by appealing to prevent the reexamination, but the European Court of Justice has now dismissed the Dutch challenge, allowing the investigation to continue.
Implications for Fair Competition in Gambling
This ongoing legal process addresses significant concerns regarding how EU member states handle gambling license renewals, particularly with respect to competition law. The EGBA has emphasized the need for transparent and inclusive procedures, insisting that all potential entrants deserve equal access to opportunities. Notably, this latest court move comes at a time when Dutch regulators are observing an increase in unlicensed gambling activity, suggesting broader regulatory concerns persist within the market.
Next Steps and Regulatory Focus
The European Commission is now expected to resume its investigation into whether the 2014 license extensions for Dutch state operators constituted impermissible state aid. The issue exemplifies how unresolved cases can return to center stage, particularly when fundamental questions of competitive fairness remain under debate.
- Author
Daniel Williams
