Netherlands Loses Appeal Over Gambling License Extensions

In a landmark decision in C‑59/24 Kingdom of the Netherlands v. European Gaming and Betting Association, the European Court of Justice ruled that the Dutch government violated EU State Aid Rules by extending gambling licenses without conducting a competitive review.

The case, brought by the European Gaming and Betting Association (EGBA), challenged the Netherlands’ practice of renewing long-standing gambling licenses without opening the process to new applicants. The Court found that this approach breached Article 107 of the Treaty on the Functioning of the European Union (TFEU), which prohibits state aid that distorts competition and affects trade between Member States.

Specifically, the Court held:

• The license extensions constituted selective economic advantage to incumbent operators.

• The lack of transparency and open bidding violated the principles of equal treatment and non-discrimination.

• The Dutch government failed to notify the European Commission of the aid, as required under EU procedural rules.

Legal analysts at Mayer Brown noted that the ruling sets a precedent for how Member States must handle gambling regulation, especially when licenses confer market exclusivity or financial benefit. The decision is expected to trigger regulatory reforms in the Netherlands and may prompt similar challenges in other EU jurisdictions.

EGBA welcomed the ruling, calling it “a victory for fair competition and consumer protection.” Dutch authorities have yet to announce whether they will appeal or revise their licensing framework.