The Kansspelautoriteit (KSA) is allowed to use a monopoly when granting the license for organizing lotto’s. The KSA was also allowed to grant the only license to Lotto B.V. This is what the Administrative Jurisdiction Division ruled in three different judgments today (March 10, 2021).
According to the Administrative Jurisdiction Division, the KSA in its new decision has sufficiently demonstrated the horizontal consistency. While there are similarities between lotto and charity lotteries, there are also important differences. For example, it is important for the channeling function, where the aim is to get as many people as possible to gamble through a legal provider, that the market for lotto’s is not divided among multiple providers.
To combat crime, prevent gambling addiction and protect consumers, the Netherlands has a single license system for the organization of lotto games. Such a system limits the European free movement of services, because there can be no other providers than the holder of that single license. In the Netherlands the license for organizing lotto’s was privately granted to Lotto B.V. Other gaming companies missed out. They think this is unfair and have appealed to the Administrative Law Division.
The question of whether a single license system for lotto’s is allowed, was previously discussed in a ruling(opens in new window)(refers to another website) of the Administrative Jurisdiction Division. In May 2018, it ruled that the KSA had to provide better reasons for whether the so-called dual system, in which only one license is granted for lottos and multiple licenses are available for charitable lotteries, is ‘horizontally consistent’. This means that a comparison between the various games of chance and the license systems for them must show that the objectives of the gaming system are pursued “in a coherent and systematic manner.