The Court of Justice of the European Union (CJEU) has dismissed an appeal by the Dutch government in a state aid case. The authorities were seeking an extension of the licensing monopoly to regulate betting and lotteries operating in the Netherlands. The European Gaming and Betting Association (EGBA) has welcomed this decision. They allege incumbent operators had their licences illegally renewed in the Netherlands.
CJEU Rules Against the Netherlands in State Aid Case Regarding Unlawful Extension of Gambling Licenses: Key Insights at a Glance
- Back in 2014, the Netherlands had extended several licences of incumbent betting and gambling operators without issuing competitive tenders. The EGBA filed a complaint to the EC in 2016, claiming the process had violated EU laws.
- In 2020, the European Commission decided to close the EGBA’s complaint without opening a formal investigation. The EC noted that the Netherlands did not provide state aid.
- The EGBA appealed the EC’s decision in the CJEU in 2021, and the top court ruled in favour of the EGBA in 2023. The Netherlands had appealed the ruling, and the top court dismissed that appeal today.
CJEU Dismisses the Netherlands’ Appeal Against Court Order
The EGBA issued a press release on October 16, confirming that the Court of Justice of the European Union dismissed an appeal by the Dutch government against the top court’s order in favour of the EGBA. The Association filed a case alleging the unlawful licence extension of incumbent gambling and betting operators by the Dutch government in 2014.
The EGBA asserts that after the Dutch market opened to private operators, the government extended the licences of existing operators without following the prescribed competitive tender process, unlike what they are doing during the 2026 licensing window. The EGBA launched a formal complaint with the European Commission in 2016, underlining the state aid offered to incumbent operators.
However, in 2020, the EC shut down the EGBA’s complaint without launching a formal complaint, noting that no state aid had been provided by the Dutch authorities. Unconvinced by the Commission’s findings, the association escalated the matter to the EU General Court in the following year.
In 2023, the General Court ruled in favour of the EGBA in Case T-167/21, overturning the Commission’s decision, citing that it had failed to discharge its duties toward carrying out an extensive and transparent investigation. The Netherlands had swiftly appealed against this decision. The CJEU’s latest ruling dismisses the Dutch appeal entirely.
Commission Must Thoroughly Examine the Case, Confirms CJEU
The top Court observed that when investigating allegations of state aid, the European Commission must examine all aspects of the matter and not take shortcuts in its analysis. The court was not asked to determine whether state aid was provided to the incumbent betting and lottery operators. Hence, it did not comment on the matter.
Instead, the court’s ruling focused on the Commission’s failure to thoroughly investigate whether any state aid was given to the operators. Maarten Haijer, the EGBA’s Secretary General, welcomed the top court’s decision, claiming that this is a clear victory for the enforcement of EU laws.
Mr Haijer stated:
We welcome the Court’s ruling. This is a clear victory for the proper enforcement of EU law. The Court has confirmed what we said all along: the Commission must investigate state aid complaints thoroughly and cannot take shortcuts. While this case dates back to 2014, it remains relevant today. It demonstrates that the Commission must fulfil its responsibilities as guardian of the Treaties – and that there are consequences when it fails to do so.
He went on to assert the responsibility of the EU Member States to uphold a fair and transparent tender process when issuing any type of gambling licence.
Mr Haijer continued:
When issuing any type of gambling licence, Member States must always ensure there is a fair, open and competitive process that treats all interested applicants equally, in line with EU law. The Commission is expected to now open a state aid investigation to determine whether the extension of monopoly licences by the Dutch authorities in 2014 involved unlawful state aid.
The EGBA has been playing a proactive part in ensuring fair play and transparency in the European gambling market. The association recently called for the harmonisation of EU gambling regulations to streamline enforcement in gambling-related cross-border disputes.
This subject was highlighted recently as Romanian lawmakers were planning to develop gambling tourism in the country. However, in the absence of standardised gambling regulations in the EU, enforcement was deemed to be a major challenge, especially in matters related to public health and gambling harm.