European Commission clears Ladbrokes in Belgian aid probe over virtual betting rights
The European Commission has completed an in-depth investigation into a complaint about state aid given by Belgium to Ladbrokes, a prominent British gambling company now part of the Entain Group. An enquiry initiated in September 2020 concerned whether Belgium had unlawfully preferred Ladbrokes by allowing it to operate virtual betting services within the country.
, published on Friday, 11 April 2025, concluded that no illegal state aid had been awarded. This ruling marked the end of a long, protracted saga that arose following a complaint from competing gaming sector players Rocoluc NV and European Amusement Company NV.
The investigation was triggered in 2019 when Rocoluc NV and European Amusement Company NV officially lodged a complaint with the European Commission. These firms, long-standing operators on the Belgian gaming market, complained that the Belgian Gaming Commission established a distorted playing field by granting Ladbrokes sole rights to provide virtual betting without imposing proportionate financial compensation on them.
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Rocoluc NV, active in the recreational and leisure sector since 1997, showed appreciable financial activity. Similarly, European Amusement Company NV, active since 1992 under the name “바카라333,” is involved in the recreational business and has been financially sound. Their complaint specifically argued that the case constituted a violation of European Union State aid rules.
Allegations against Ladbrokes and authorities
At the centre of the enquiry was the fairly new phenomenon of virtual betting in Belgium from 2014 to 2018. Virtual betting merges aspects of chance, akin to slot machines, with the thrill of wagering on virtual sports events. Ladbrokes’ own depiction brings to light these games as computer-generated simulations wherein results are managed by unbiased algorithms. As such, the games are open to the masses because of the limited requirement for advanced knowledge.
During 2014 and 2015, the Belgian Gaming Commission, Belgium’s gambling regulator, apparently licensed Ladbrokes to provide land-based and internet-based virtual betting. This first approval was in response to Ladbrokes’s request and was granted via email correspondence, based on an interpretation that virtual betting was included in the then-current rules regulating Class IV gaming houses, which also included betting shops.
Bookmaker licenses are Class IV licenses in Belgium, and establishments with F1 or F2 licenses may also offer some automatic games of chance. The Gaming Commission’s first interpretation, granted via informal communication, came at a time when the regulatory framework for virtual betting in Belgium had yet to be clearly marked out.
Nonetheless, from 2015 to 2016, the Gaming Commission took a different position when other operators sought the same authorisation, refusing to grant it to them based on an ongoing internal review of the virtual betting regulatory regime. In spite of this shift in position relative to other businesses, Ladbrokes’ original authorisation still stood. The unevenness in the treatment of various operators precipitated the primary grievance of unfair advantage.
The gist of Rocoluc NV and European Amusement Company NV complained that this evolution granted Ladbrokes a de facto monopoly right to offer virtual betting in Belgium between February 2014 and May 2018. The complainants contended that Ladbrokes reaped enormous benefits from this monopoly position without making the financial contribution to the Belgian state that is required, comparing the situation to that of the Belgian National Lottery, which pays a substantial proportion of its revenues for its monopoly operating right. This comparison was made in order to highlight the complainants’ perception that Ladbrokes had received a valuable advantage without the usual financial price that comes with such an advantage in the gambling sector.
Probe by the European Commission
In its analysis, the European Commission thoroughly considered whether the informal email responses between Ladbrokes and the Belgian Gaming Commission constituted under Article 107(1) TFEU.3 Article 107(1) TFEU establishes the test for determining whether a State measure constitutes state aid.
The Commission’s final finding was that such informal email responses lacked the force of law to constitute a formal act granting exclusive rights. The Commission also found that the Belgian State did not waive any resources legally due to be paid by Ladbrokes for offering virtual betting for the subject period.
The European Commission, as the executive arm of the EU 21, has the duty of enforcing EU law. The Belgian Gaming Commission, being the national regulator, acts within this context. The Commission was guided by the principle that state aid normally involves a legally binding commitment or a transfer of state resources. Here, the informal character of the emails and the absence of legal obligation of specific payments were determinative considerations in the Commission’s reasoning.
The European Commission’s press release clarified, “The Commission found that informal email responses of the Belgian Gaming Commission to Ladbrokes did not constitute an act granting aid in the meaning of Article 107(1) TFEU.” The Commission also noted that the email responses did not constitute granting exclusive rights on virtual betting to Ladbrokes and that the Belgian State did not waive or renounce any resources that Ladbrokes was legally required to pay for the exploitation of virtual betting.
The Commission recognised the complainants’ claim of Ladbrokes’ de facto exclusive right but held that it did not constitute state aid. The tipping point was that no payments were legally due from Ladbrokes for providing virtual betting during the period in question, and no official, legally binding exclusive right was conferred. This difference between an empirical situation and a legally endorsed exclusive right with financial charges attached is the key to the Commission’s finding.
The European Commission’s decision has far-reaching consequences. Ladbrokes will not have to pay retroactive financial penalties nor return any of the supposed aid. Belgium is also spared the possibility of censure by the European Union for non-compliance with State aid rules. The decision comes as a relief to Ladbrokes, now under Entain ownership, as it eliminates the doubt and possible financial exposure brought about by the enquiry. In the same vein, Belgium escapes possible criticism and fines that may result from non-compliance with EU State aid rules.
