European Commission Rules in EGBA’s Favor in Netherlands State Aid Case

The European Gaming and Betting Association (EGBA), a Brussels-based trade association representing the regulated gaming industry, announced that the European Commission has dismissed an appeal by the Netherlands in a state aid case concerning the extension of monopoly licenses.

The Netherlands Reissued Licenses without a Competitive Process

For context, in 2014, the Netherlands, which at the time employed a different licensing framework than today, extended a number of monopoly licenses to existing betting and lottery operators. However, the Netherlands did so without a competitive tender process, resulting in an EGBA complaint to the European Commission in 2016.

In its complaint, the organization argued that the Netherlands had violated EU state aid rules. Four years later, the commission closed the complaint without ever opening a formal investigation. The European Commission insisted that no state aid was involved in the case.

In 2021, the EGBA appealed the commission’s decision to the Court of Justice of the European Union (CJEU), insisting that the Netherlands had violated state aid rules after all. Then, in 2023, the EU General Court ruled (Case T-167/21) in EGBA’s favor, annulling the commission’s previous decision. The ruling also noted that the European Commission had failed to properly investigate the case.

The same year, the Netherlands filed its own appeal, trying to dismiss the ruling. That brings us to today, as the EGBA confirmed that the Netherlands’ appeal has been dismissed instead.

EGBA Hailed the CJEU Ruling

In its announcement, the EGBA said that it welcomes the CJEU ruling, which essentially confirmed that the European Commission had failed to investigate whether the Netherlands provided the monopolies whose licenses it extended with unlawful state aid.

The EGBA added that the CJEU confirmed that the European Commission is expected to examine all relevant aspects of state aid complaints before making a decision. While the CJEU couldn’t tell whether the Netherlands had actually violated the state aid rules, its decision emphasized that the commission should have properly investigated the matter before dismissing the EGBA’s complaint.

Maarten Haijer, EGBA’s secretary general, called the latest ruling a “clear victory for the proper enforcement of EU law.” He added that the CJEU has confirmed the EGBA’s insistence that the European Commission must thoroughly investigate state aid complaints instead of taking 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.

Maarten Haijer, Secretary General, EGBA

Haijer also commented on the Netherlands matter, saying that European Union member states must always tender licenses through a fair, open, and competitive process. As a result of the latest decision, the European Commission is now expected to open a state aid investigation to see if the reissued licenses exploited European state aid funds.