The European Commission has ruled that the decision to grant Ladbrokes virtual betting rights in Belgium does not constitute state aid, in a decision that ends more than five years of legal wrangling.

The original complaint was filed in 2019 by gaming operators Rocoluc NV and European Amusement Company. The European Commission concluded this week and ruled in favour of Ladbrokes’ parent company Entain.

The case concerned virtual betting operations in retail stores in Belgium, as these types of games were not covered by any regulatory framework until Ladbrokes requested that they be regulated by the market.

This allowed Ladbrokes to operate virtual betting platforms in the country. However, the complaint alleged that the regulator in Belgium had denied several operators the same right.

Investigations by the European Commission saw a close examination of whether the arrangement breached Article 107(1) of the Treaty on the Functioning of the European Union (‘TFEU’), which focuses on state aid. 

The European Commission found that exclusive rights had not been granted to Ladbrokes. Adding that the Belgian state “did not waive or forego any resources which should have been paid by Ladbrokes for operating virtual betting”.

It continued: ”On this basis, the Commission concluded that the alleged measure does not constitute state aid under EU rules.”

Key to the ruling was the fact that no payments had been officially due from Ladbrokes and there was not an official binding exclusive right for virtual betting rights. 

The vindication will be celebrated by Ladbrokes, which has a significant presence in Belgium with almost 300 betting offices, and means that the firm will not be sanctioned with legacy fees. 

The news comes as Entain is faced with the fallout from serious allegations being made against its Australian subsidiaries related to possible compliance failings.

It is worth noting that Entain is facing the fallout from serious allegations made against its Australian subsidiaries relating to possible compliance breaches. AUSTRAC‘s report, seen by the Australian Financial Review, detailed breaches that occurred at Neds and Ladbrokes AUS. It is alleged that Entain failed to implement AML procedures, particularly in relation to bets by players who had significant links to drug trafficking.

Entain CEO Stella David provided the following statement to iGaming Expert about the allegations: “We are taking these allegations extremely seriously and continue to fully cooperate with AUSTRAC. We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector for our customers, stakeholders and the wider community.”

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