by Ryan D. Jaeger
The highest court in Europe ruled late last week that a member state may ban online gambling groups from operating within their borders if the intention is to fight crime and fraud.
The ruling came after the Netherlands was challenged by two UK betting firms, Ladbrokes and Betfair, that its gambling monopoly was unfair.
Only the Dutch De Lotto group is allowed to offer gambling services in the country as the exclusive license holder.
The European Court of Justice ruled: "A member state can prohibit the operation of games of chance on the internet. Prohibition may, on account of the specific features associated with the provision of games of chance on the internet, be justified by the objective of combating fraud and crime."
The ECJ's ruling applied specifically to the charges brought against the Netherlands, however analysts believe that it will serve as a basis for other cases as they come up.
Further, the court said "the objectives of consumer protection and the prevention of both fraud and incitement to squander money on gambling, as well as the need to preserve public order" were reasons to follow the ruling.
However, the European Gaming and Betting Association (EGBA) was far from satisfied with the ruling.
"The internet raises new questions and challenges that cannot be resolved through the judicial process," said the group's secretary, Sigrid Ligne.
"We are confident that reforms of the gambling laws will take place in the Netherlands, as they already do throughout the EU."
Not surprisingly, De Lotto welcomed the ruling, while Ladbrokes and Betfair said that they had "highlighted the inconsistencies in Dutch gaming law."
