Dutch Try to Slip Under EC Radar

Despite the European Commission (EC) making no secret of the fact that it is going after Member States that try to illegally ban online gambling services, and with high profile infringement proceedings launched against France, Germany and a number of other EU members, Dutch authorities are the latest t have a crack at banning net betting operators.

Ernst Hirsch Ballin, Dutch Minister of Justice recently directed his Ministry to order Dutch banks to disallow all transactions between Dutch residents and online gambling operators, or face legal action. The demand has been challenged by Betfair and also raised the eyebrows of the EC.

One EC spokesperson was quoted in relation to the ban, saying "The European Commissioner [Charlie McCreevy] has asked the appropriate services to start an investigation into the banking blockade. As far as we are aware, the Netherlands is the only country in Europe to do such a thing."

Under EU Law, more specifically, Article 49 of the EC Treaty, EU Members are not allowed to ban a service provided by operators from outside their country where that same service is allowed to be provided by local operators. The 'freedom to provide services' provisions were drafted to ensure free trade between EU members and discourage protectionism. And the EC has, on numerous occasions ruled that this law applies to online gambling as it does to other services.

As a result, a number of EU members trying to ban online gambling, including France and Germany, have had to face EC infringement proceedings, as well as the reality that their laws are ineffective and easily challenged by gambling operators.