Online gambling companies lose court case against Dutch state – StMaartenNews.com – News Views Reviews

THE HAGUE – The court of appeal in The Hague has confirmed a ruling issued by a lower court on January 17, 2024 against the operators of online gambling sites. These companies demanded that the court declare actions taken by the Dutch Authority on Games of Chance and the Dutch public prosecutor’s office be declared unlawful because they violate the free movement of services within the European Union.

Like the lower court, the Court of Appeals acknowledged that a prohibition on offering online gambling limits that free movement, but it also ruled that the ban on offering such services are proportionate because European member states have leeway to set their own rules..

The companies that initiated the court case against the Dutch state and its Authority on Games of Chance   are not identified in the ruling that was published on rechtspraak.nl, but it does show where they are established. The ruling mentions Belgium, Switzerland, Curacao, Malta and Luxemburg as bases for their activities.

Eight of the fourteen companies involved in the appeals hearing offered gambling on the Dutch market without having a permit to do so. Between 2007 and 2014 they used Maltese permits. During that period it was not even possible to obtain a permit in the Netherlands for operating online gambling sites.

That there is a lot of money involved in online gambling became clear from a press release issued by the prosecutor’s office. On June 24, 2021, prosecutors announced that they had searched real estate in Belgium, Sweden, Luxembourg, Malta, Curacao, Austria and Switzerland. During these actions, they put a lien on €100 million ($116 million) worth of art, real estate, bank accounts, jewelry, cars and investments.

The press release claimed that illegal gambling companies earned and laundered €250 million ($290 million) with their activities. It furthermore stated that illegal gambling hides turnover and profits, that it is unclear whether the games are fair and that there is no protection for minors who could already be indebted. 

The numbers make clear that the stakes were high in this court case, but the court ruled against the gambling companies. The ruling states that a complete ban on offering online gambling in the Netherlands is justified for urgent reasons of social importance. 

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