Dutch Court Upholds National Lottery Monopoly

The Netherlands Gaming Authority (KSA) has received authorization from the Dutch Administrative Court to grant a monopoly to the national lottery organization. This decision was made in three rulings issued today (March 10th).

The court’s decision allows the Dutch lottery to continue operating as a sole provider.
After private gambling companies challenged the monopoly system – including Betfair and the Dutch Online Gambling Association (NOGA) – the Administrative Court rejected the appeals. The court determined that the exclusive authorization system for the national lottery organization is justified.

The court highlighted that the question of whether the national lottery’s exclusive authorization system is permissible was previously addressed in a 2018 ruling. At that time, the KSA argued that the exclusive authorization system was valid.

The Administrative Court ruled today that the KSA’s practice of issuing multiple charitable lottery licenses while issuing an exclusive lottery license to Dutch lottery operator Lotto BV is justified.

The court stated that while there are similarities between the national lottery and charitable lotteries, there are also significant differences.

The key distinction lies in the fact that, as the aim of the lottery is to encourage maximum participation in gambling through a sanctioned provider, it’s crucial that the market isn’t fragmented by an excessive number of suppliers.

Otherwise, they argue, there’s a danger that no provider will be able to offer a sufficiently large prize to attract a substantial customer base for legal offerings.

They also assert that lottery draws occur far more frequently than charitable lotteries, and that the lottery allocates a significantly smaller proportion of its funds to charitable causes.

The department concluded that, due to these discrepancies, there are enough disparities in the licensing framework to maintain consistency, implying that a monopoly on lottery licenses can be preserved.

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