Online Casino Sues Dutch Government

May 12, 2009 | News Category: Gaming Law

1 Comment One of the larger United Kingdom betting companies has decided to sue the Dutch Government in connection with recent actions they have carried out affecting online casino banking. The UK betting company, Betfair, the betting exchange operator, has filed a suit in Dutch court, after a process similar to the UIGEA has been implemented, with regards to processing payments from online casinos.

The Netherlands' Ministry of Justice has ordered that banks are now restricted from trying to process transactions similar to the ban imposed by the UIGEA in the United States. Banks have been ordered to stop all operations that involve online gambling sites.

Since Betfair is also an European Union member, they have chosen to file a separate complaint with the European Commission. This complaint notes that the measures taken in connection with banking for online casinos, violates free trade in services agreements that have taken place among EU member nations.

Betfair has alleged that the Dutch government has taken these steps simply in order to protect the monopoly of their lottery, De Lotto. Proceedings against the Netherlands have already been established by the European Commission.

Mark Davies, the Betfair Managing Director, has said that the actions of the ministry "fly in the face of the EU principles of open and fair competition." Mr. Davies also stated that the order passed down by the Dutch Government regarding the blockage of financial transactions for online casinos should not be held to and should not be binding on the banks.

The letters received by the banks came with the explanation that because there is no form of licensing available from the government at this time, that all online gambling websites are considered to be unlawful. The letter continued to inform the financial institutions that it would be "inappropriate for banks to provide facilities to the providers of illegal games of chance."

After the instructions were issued to online gambling operators, a few departments in the government denounced the payment transaction blockage. They said that the payment blockade was badly constructed. Many also felt that the blockade was outside the jurisdiction of the ministry.

In the US, there has been much confusion about exactly what should be blocked and what should not be blocked, since the UIGEA (Unlawful Internet Gambling Enforcement Act) was introduced. This confusion has caused the blocking of sites that were not supposed to be blocked because the financial institutions are erring on the side of caution so that they could not be accused of doing the wrong thing.

Barney Frank has introduced a bill to repeal the UIGEA, and another bill to regulate and legalize online gambling. Many are hoping that the ideas laid out in both bills will be accepted soon.

Comment(s) on this news

gokken - May 28, 2009
Finally a company who sues the dutch government. The Dutch government doesn't allow foreign companies because they take the money out of Holland. But they say that it has to do with gambling addiction. All BS

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