Earlier this year, the Dutch Minister of Justice sent a letter to all the
country's banks and finance institutions, warning them not to process payments
from their Dutch customers to gaming websites.
Hirsch Ballin's letter caused an uproar, especially among offshore gaming
companies such as the UK group, Betfair, which claimed that the
government's stand was simply unacceptable.
As a result, Betfair has decided to go ahead and initiate legal action
against the Dutch government for damages caused by its decision.
"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," said the Managing Director of Betfair,
Mark Davis.
Betfair's conflict with the Dutch government dates back several years to 2004
over its right to offer its services to the country's adult gamblers.
Betfair claims that the government's decision to keep offshore companies out
of its borders directly contravenes Article 49 of the European Treaty.
"It's actions are against the interest of the Dutch consumer and fly in the
face of the EU principles of open and fair competition," said Davies. "This
serves only to protect the Dutch government's own gaming monopoly and keep
prices high. "It is madness that the Netherlands, as one of the founding members
of the single market, has resorted to illegal tactics that prevent consumer
choice and go against the Treaty."
Betfair vowed to continue fighting the decision to block financial
transactions. "We will fight anyone who unlawfully prevents us and our customers
from doing business," said Davies.
