The Dutch Council of State has upheld the country's single-licence system for land-based sports betting, instant lotteries and lotto games, overturning a lower court ruling following a challenge brought by JVH Venture II and JVH Venture IV.
The dispute began after JVH applied for licences in December 2021. The Kansspelautoriteit (KSA) rejected the applications because the relevant licences had already been awarded to Lotto for the period from January 2022 to December 2026.
In February 2024, the District Court of East Brabant ruled that the single-licence system was disproportionate and instructed the KSA to reconsider JVH's objections. The KSA and Lotto appealed that decision.
The Council of State has now concluded that differences between land-based and online gambling justify the Netherlands operating separate regulatory models. Online gambling has operated under an open licensing system since the Remote Gambling Act took effect, while the three land-based categories remain restricted to one licensee.
The court identified differences including the physical presence required for land-based betting, game frequency and the availability of live betting online. It concluded that these distinctions were sufficient for the two regulatory systems to remain horizontally consistent.
The Council of State also accepted the KSA's argument that competition between multiple land-based licensees could increase recruitment and advertising, potentially encouraging greater participation. The regulator argued that safeguards used online, including Cruks and the control database, are more difficult to apply to physical gambling products.
The judgment found the single-licence restriction compatible with Article 56 of the Treaty on the Functioning of the European Union. The appeals brought by the KSA and Lotto were upheld, while JVH's appeals against the regulator's September 2022 decisions were declared unfounded.
The case reflects the different licensing structures operating across Dutch gambling. The Remote Gambling Act introduced an open system for online gambling, allowing multiple legal entities to obtain licences, while the Gambling Act continues to provide for one licensee for land-based instant lotteries, sports betting and lotto games.
The ruling follows continued activity in the Dutch online sports betting market. Earlier this month, Lucky7 Casino selected Delasport to power its sportsbook following KSA approval to add online sports betting to its existing casino offering.
JVH could have challenged Lotto's original November 2021 licence awards directly, but did not use the available legal remedies within the required period
