06-June-2010

Friday, the European Court of Justice in Luxembourg ruled European Union member states may ban unlicensed online gambling operators from offering their services across national borders. Prior to the ruling all goods and services could pass freely between EU member states. The new ruling makes an exception to this rule for online gambling.

The ruling concerned an appeal U.K. online bookmaker Ladbrokes filed in response to a 2003 Dutch Supreme Court ruling. According to the Dutch court, the Netherlands could ban Ladbrokes from competing with state-sponsored operator De Lotto.

Subsequent to the Ladbrokes ruling, the EJC issued a similar judgment concerning a case between U.K. online bookmaker Betfair and Dutch authorities. According to the court, EU countries may block operators from other member states to protect their citizens from fraud and gambling addiction.

“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.

After the ruling, several online gambling operators closed their virtual doors. As commentators from international news service Reuters stated, the ruling is “a blow to the multi-billion euro online betting industry."

The European Gaming and Betting Association, which represents many of Europe’s private operators, is urging lawmakers to save the industry. Still, some commentators remain skeptical about the industry’s future even if Brussels enacts protective legislation. As some have pointed out, licensing laws, if like those enacted in France, could cost operators too much for them to remain viable.

By: Phill Provance
phill.provance@acehoyle.com

To avoid legal redress under international copyright law reprinters must cite the name of the above article's author and that author's e-mail address, and they must link to its publishing site: www.acehoyle.com.

RELATED NEWS :