The European Gaming and Betting Association (EGBA) welcomes the decision of the Court of Justice of the European Union (CJEU), which confirmed that the European Commission failed to properly investigate whether the Netherlands had granted illegal state aid when, in 2014, it extended monopoly licenses to existing operators without conducting a public and competitive tender process.

Case Background

In 2014, the Netherlands extended several monopoly licenses for national betting and lottery operators without launching an open and competitive tender.

In 2016, EGBA filed a formal complaint with the European Commission, arguing that the lack of an open process violated EU state aid rules.

In 2020, the Commission decided to close the case without opening a formal investigation, claiming there was insufficient evidence to suggest the existence of state aid.

EGBA appealed this decision before the EU Court of Justice in 2021.

In 2023, the General Court of the European Union (Case T-167/21) ruled in favor of EGBA, annulling the Commission’s decision on the grounds that it had failed to properly investigate the case.

The Netherlands appealed that ruling, but in today’s judgment (Case C-59/24 P), the CJEU dismissed the appeal in its entirety, confirming the earlier decision.

The Court emphasized that, when examining cases of alleged state aid, the European Commission must analyze all relevant aspects of a measure and cannot omit essential steps in its assessment. The Court did not determine whether illegal state aid was actually granted, focusing instead on the fact that the Commission had not adequately investigated whether the license extensions constituted state aid.

“We welcome the Court’s ruling. This is a clear victory for the proper application of EU law. The Court has confirmed what we have been saying from the beginning: the Commission must thoroughly investigate state aid complaints and cannot take shortcuts. Although this case dates back to 2014, it remains fully relevant today. It shows that the Commission must fulfill its role as guardian of the Treaties and that there are consequences when it fails to do so,” said Maarten Haijer, Secretary General of EGBA.

Haijer added:

“When Member States issue any type of gambling license, they must ensure a fair, open, and competitive process that treats all applicants equally, in line with EU law. We now expect the Commission to open a formal state aid investigation to determine whether the Dutch authorities’ 2014 monopoly license extensions did or did not involve illegal aid.”