A probe into an alleged favouritism by the Dutch state could be on its way, the European Gaming and Betting Association (EGBA) has said.

The case goes all the way back to 2014, when the Netherlands granted licence extensions to a number of incumbent betting and lottery operators. Lacking an open tender process, the move prompted the EGBA to file a complaint with the European Commission (EC) in 2016 about unlawful state aid.

Four years later, the complaint was dismissed by the EC in 2020 with claims that no state aid was involved. However, many questions were raised around the level of depth of the Commission’s investigation, if such existed, and it became another point for content.

In 2021, the EGBA followed up with an appeal filed with the Court of Justice of the European Union (CJEU) against the Commission’s decision. The Court’s final say was ruled in favour of the trade body, annulling the EC’s decision with concerns about unsatisfactory investigation practices.

To maintain a level of continuity, it is important to remind that the CJEU’s ruling does not concern whether unlawful state aid was present or not, but that a proper investigation into the matter had not been conducted.

The Netherlands then tried to counter-appeal in 2023, but this was entirely dismissed by the CJEU this week as the latest development in the saga. And whilst not under obligation, the Commission could choose to investigate at the required level, which then might lead to either state repercussions for the Netherlands or consequences for the operators involved.

Maarten Haijer, Secretary General of EGBA, commented: “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.

“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.”