The Court of Justice of the European Union (CJEU) has ruled that a thorough investigation must be conducted into Dutch lottery licenses, following a complaint filed by the European Gaming and Betting Association (EGBA) in 2016. The CJEU decision overturns the European Commission’s closure of the case in 2020 without conducting an investigation. The EGBA’s appeal challenged the Commission’s statement that the licensing procedure did not involve any illegal state aid.
Background of the Case:
The EGBA filed a complaint in 2016 regarding Dutch lottery licenses, expressing concerns about the lack of transparency in the licensing procedure.
The European Commission closed the case in 2020 without initiating an investigation, asserting that incumbent lotteries did not receive illegal state aid.
CJEU Ruling and EGBA’s Reaction:
The CJEU has ruled in favor of the EGBA, stating that there must be an investigation into whether the Dutch licensing procedure complies with EU law.
Maarten Haijer, EGBA Secretary General, welcomed the decision and emphasized the need for a thorough investigation, expressing readiness to provide necessary information.
EGBA’s Argument and Allegations:
EGBA argued that the renewal process for incumbent holders lacked transparency and constituted illegal state aid.
Incumbent holders could renew lottery licenses without undergoing an open, transparent, and non-discriminatory allocation process, potentially affecting market dynamics.
CJEU’s Concerns and Decision:
The CJEU expressed concerns about the absence of a proper investigation by the Commission into whether the contested measure conferred an indirect advantage on lottery license holders.
The court highlighted the remittance of proceeds generated by license holders to bodies serving the common interest as a significant aspect that needed examination.
Formal State Aid Investigation:
The CJEU’s ruling mandates the European Commission to conduct a formal state aid investigation into the Dutch lottery licenses.
The investigation will assess the compliance of the licensing procedure with EU law and the potential existence of any illegal state aid.
Costs and Commission’s Responsibility:
The CJEU has ordered the European Commission to cover the costs incurred by the EGBA for the appeal.
The decision emphasizes the importance of consistent enforcement of EU law, underscoring the Commission’s role as the guardian of the Treaties.
The CJEU’s decision to order an investigation into Dutch lottery licenses marks a significant development in the EGBA’s efforts to ensure transparency and legal compliance in the licensing procedure. The European Commission’s responsibility to conduct a thorough examination aligns with the overarching goal of upholding EU law consistently across sectors, reinforcing the principles of fair competition and non-discrimination in the gambling sector.