Betfair has complained to the European Commission over the Dutch government’s moves to block the British gaming company’s local operations, and is taking legal action against the government in The Netherlands ahead of a possible suit for damages.
The company said the government’s letter to local banks in February asking them to block payments for bets was a breach of EU internal market rules which allow companies authorised in one European Union member state to operate in any other.
It is also challenging the government’s legal authority to send the letter to the banks, and plans to sue the government for damages if its legal action is successful.
Betfair legal counsel Mark Warrington said: “We have to defend ourselves. If our legal action in the Dutch court is successful, we will be issuing a claim for the damages that our business has incurred during the period banks were prevented from facilitating payment. That sum will certainly run into the millions.”
People with bank accounts in the Netherlands, where there is a ban on online gaming by EU-licensed operators, are not able to move money to Betfair’s website to pay for bets.
In a statement, Betfair managing director Mark Davies said: “This is a desperate move by the Dutch government to prevent a company that is fully licensed and regulated in jurisdictions across Europe from being accessed by residents in the Netherlands”.
The row is the latest instalment in the ongoing cases being brought by the Commission against member states over gaming law. EU internal market commissioner Charlie McCreevy issued final warnings to Greece and Netherlands over the provision of gambling services to citizens in those countries (more) in February last year.
However McCreevy has faced resistance from European politicians and lobbies to continuing the actions, as many member states are keen to protect revenue from their lucrative state monopolies.
The European Court of Justice, the EU’s top court, has said governments can curb gaming but any restrictions must be in the public interest and applied to all operators in the same way, including state monopolies.
Categories: Legislation, Payment Processing, Technology
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