Belgium’s Virtual Betting Rules Cleared by EU
Dispute Sparks Investigation
In 2019, Rocoluc NV and European Amusement Company NV lodged a formal complaint against Ladbrokes, asserting that the company had secured an exclusive right to provide virtual betting without adequate compensation to the Belgian state. Virtual betting, a system where players wager on simulated sports events powered by random number generators, was gaining traction in Belgium’s gambling scene.
The European Commission launched its formal probe in September 2020 under Article 108(2) of the Treaty on the Functioning of the European Union, aiming to determine whether the Gaming Commission’s actions constituted state aid. From 2012 to 2015, the Commission had classified virtual betting as part of Class IV gaming, which encompassed betting shops like those run by Ladbrokes. During this period, Ladbrokes received email approvals in 2014 and 2015, permitting it to offer virtual betting both online and in physical locations.
However, starting in 2015, other operators faced denials when seeking similar permissions, raising suspicions of favoritism. The investigation zeroed in on whether these emails provided Ladbrokes with a selective benefit under Article 107(1), which requires state aid to involve state resources and a clear economic advantage. Since Ladbrokes paid only routine fees, unlike the National Lottery’s substantial contributions, the Commission examined if the approvals amounted to an improper grant of market access.
Examining Regulatory Decisions
The probe began in September 2020, guided by Article 108(2) of the Treaty on the Functioning of the European Union. It focused on the Gaming Commission’s actions from 2012 to 2015, when virtual betting was classified under Class IV gaming, which included betting shops like Ladbrokes’. In 2014 and 2015, Ladbrokes received emails approving its virtual betting services for both online and physical venues. However, competitors faced rejections starting in 2015, raising questions about fairness. Investigators examined whether these approvals gave Ladbrokes a selective benefit under Article 107(1), which defines state aid as involving state resources and an economic advantage.
The Commission found no state aid. It ruled that the Gaming Commission’s emails to Ladbrokes held no legal authority to grant exclusive rights. “The communications did not constitute a formal or legally binding act,” the Commission stated, stressing that no state funds were involved. Furthermore, the regulatory framework was under review during this period. In July 2017, Ladbrokes’ permission was halted, and by May 2018, all Class IV operators could offer virtual betting under new rules.