Dutch Version of UIGEA Causes Online Casino to Sue

UK online casino operator Betfair filed suit in Dutch court, saying the action denies its rights as an EU licensed gaming company.

The Netherlands' Ministry of Justice informed the country's banks recently that, because there are no Internet gambling sites licensed by the government, the banks should begin to halt operations with those sites, including payment transactions. UK online casino operator Betfair filed suit in Dutch court, saying the action denies its rights as an EU licensed gaming company.

Betfair also filed a formal complaint with the European Commission, saying the measure violates free trade in services agreements among EU member nations. Betfair alleges the Dutch position was taken to protect the monopoly of De Lotto, run by the Dutch government. The EC has already established proceedings against the Netherlands.

Betfair managing director Mark Davies said the ministry's actions "fly in the face of the EU principles of open and fair competition." He says the government's order to Dutch banks must be held to not be binding.

The Ministry informed banking leaders in a letter that, because there is no licensing available by the government, all online gambling sites are unlawful, and that it would be "inappropriate for banks to provide facilities to the providers of illegal games of chance."

Not only the Dutch financial system, but several departments within the government publicly denounced the payment blockade as poorly constructed and beyond the ministry's jurisdiction.