Betfair boss hits out at blocking moves of Dutch government
Posted by Gavin Smith on 11 May 2009 at 10:05
More details have of emerged of a bold legal challenge made by an online betting operator to the Dutch government.
Betfair, based in Hammersmith, London, lodged an action after officials in Holland told banks not to process payments made by Dutch customers to online gaming websites based in Britain.
The company has complained to the European Commission and also said the Dutch government is aiming to protect the interests of the other gambling firms in the Netherlands.
The Independent reports the official complainant and lawsuits were filed in the Hague on Wednesday, following a letter sent by the Dutch government to the country's banks back in February.
Quoted by the paper, managing director at Betfair, Mark Davies, said the letter was a "deperate move".
According to the paper, he also said: "This serves only to protect the Dutch government's own gaming monopoly and keep prices high."
The company is also saying that the government move is contrary to European rules on free movement of services and capital across the EU.
The Independent also reported that Betfair is concerned the likes of Denmark, Finland, Norway and Sweden may to follow the Dutch government's lead.
The letter has reportedly drawn action from Dutch Banks, who have banned payments from UK operators.
Betfair's case will be that the Dutch Ministry of Justice move is illegal. The firm is then expected to launch a damages claim.
Gambling in the Netherlands is centred on De Lotto, a state-owned lottery company, and Scientific Games, an American firm.
Quoted by the paper, Mr Davies added: "The government's objective of shutting out foreign operators while feather-bedding domestic monopolies, one big US multinational, and protecting a cosy cartel cannot be allowed to continue. We will fight this."
Betfair are not alone in their approach, as the Independent also points out another dispute between bookmakers Ladbrokes and the Dutch government, dating back to a 2002 injunction stopping Ladbrokes from taking bets from Dutch citizens via its website.
According to the Times, the Dutch Ministry of Justice said as laws in Holland don't allow for internet gambling licences it was “inappropriate for banks to provide facilities to the providers of illegal games of chance".
The ministry's letter said banks should cease relationships with internet gaming firms within a "reasonable" timeframe.
Betfair also added the timing of the move was "questionable" because the European Court of Justice, which will deal with the Betfair and Ladbrokes cases, have not yet decided on the compatibility of the Dutch betting and gaming act with European law.
