02/02/2006 Ladbrokes Wins EFTA Court referral in Challenge to Betting Monopolies

In a significant development in its legal challenge to state betting monopolies, Ladbrokes has won a referral of its case against the Norwegian Government for rejecting its application for a betting licence in Norway. Following a judgment in Norway the case will be referred to the European Free Trade Area court in Luxembourg - something Ladbrokes has been pushing for.

The case relates to Ladbrokes’ application for a betting licence in Norway, which was submitted in June 2004. Having had its licence application rejected, Ladbrokes filed a lawsuit against the Norwegian Government arguing it should be able to offer its services in competition with the state-licenced monopoly under the principles of free and fair trade which are enshrined in the Treaty of Rome.

The district court in Oslo has decided to refer Ladbrokes’ case against the Norwegian Government to the EFTA court in Luxembourg.

The EFTA court will now rule on the legality of the Norwegian Lottery Act, which covers the licensing of betting and gaming operators and may result in a change to the current state monopoly position.

Ladbrokes managing director, eGaming John O'Reilly commented: "This is a major step in our ongoing challenge to state monopolies in betting and gaming. By having the case referred to the European Court we can expose the discrepancy between European law and national law. Betting is subject to free and fair competition under Article 49 of the Treaty of Rome in the same way as other goods and services. At the moment in many European countries national law is restricting competition and choice and delivering poor value to the consumer."

The case will be heard in the spring of 2006.

Ladbrokes is also engaged in legal action in the Netherlands where it is hoping to secure a referral of the case to the ECJ.