Dutch Lotteries Under Fire: the EU Commission to Investigate Licensing Practices

The Court of Justice of the European Union (CJEU) has ruled that the EU Commission must investigate the legality of how Dutch lotteries get their licenses. This ruling came after the European Gaming and Betting Association (EGBA) challenged the Commission’s decision to drop the case.

EGBA first complained to the EU Commission in 2016, saying that the Dutch lottery licensing process violated EU laws. The association pointed out problems with the unclear way of renewing licenses for existing operators, which could be seen as illegal state aid.

The EU Commission looked into the complaint until 2020, but then decided to close the case without an investigation, calling EGBA’s arguments “illegal state aid”. A few months later, EGBA took the case to the European Court.

The EU Court told the EU Commission to do a full investigation and to pay for EGBA’s legal costs.

EGBA’s Secretary General Maarten Haijer welcomed the court’s decision, but said it was not surprising. He said, “We are happy that the CJEU ruled in our favor and annulled the Commission decision, but we expected it. The facts and data of this case raised serious doubts about the compliance of the Dutch licensing procedure with EU law, which should have prompted the Commission to open a formal state aid investigation to address those doubts. We are confident the Commission will now do a proper investigation, and we are ready to provide any necessary information and data”.