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Ladbrokes case: a Dutch Court demands proof of “consistent gaming policy”

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Is D-Day approaching for the gaming industry ? On 2 June 2004, the court of Arnhem held that the restrictions imposed to Ladbrokes could not be reconciled with the requirements of European law ! For the first time since the De Lotto and Holland Casino began their crusade against foreign remote gaming operators, a Dutch…

Is D-Day approaching for the gaming industry ? On 2 June 2004, the court of Arnhem held that the restrictions imposed to Ladbrokes could not be reconciled with the requirements of European law !

For the first time since the De Lotto and Holland Casino began their crusade against foreign remote gaming operators, a Dutch court assessed in concreto the Dutch gaming policy in light of the Gambelli decision of the European Court of Justice.

In contrast to the Betfair case, where the court of Zutphen referred in abstracto to the existing imperative reasons of public interests, the court in the main proceedings lacked the inconsistency of the Dutch gaming policy for a number of reasons:

  1. From the annual reports of the De Lotto, it can be derived that the objective pursued is to increase its turnover, notably by exploring new markets and attracting new customers. No reference is made towards compulsive gambling and the protection of consumers .
  2. The omnipresence of the marketing campaigns of the Dutch licensees, in particular the direct and indirect promotion of their gaming activities in radio and TV shows, as for instance, the former Casino Kings TV program.

The Court concluded that the marketing campaigns, in particular the “not-won-money-back” guarantee for new subscribers, were designed to stimulate the demand for games, even when such a demand was inexistent. The marketing strategy of Holland casino even presented a visit to the casino as a normal day out with the family!

In the end, the Court of Arnhem held that the Dutch gaming policy was not sufficiently consistent to stand the test with article 49 of the EC Treaty concerning the freedom to provide services. Therefore, the Dutch government and the De Lotto are invited to react before 15 September 2004 to these remarks and conclusion.

The decision of the Court of Court of Arnhem (Ladbrokes) is available on this site..

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