On 18 February 2005 the Supreme Court in the Netherlands rejected an appeal by Ladbrokes against a September 2003 ruling that recognised the exclusive right of the Dutch betting operator De Lotto. On 17 October 2006 Ladbrokes lost an appeal case in the Netherlands that will prevent Ladbrokes.com from accepting bids from Dutch citizens. The Dutch state operator will maintain its monopoly on gambling services.

Accusing the Netherlands of extreme protectionism, Ladbrokes has said it will issue a complaint to the European Union on the grounds that legal proceedings instigated by a state operator and upheld by a national court to protect a monopoly position contravenes EU law. Ladbrokes will also attempt to reverse the ruling against it in the Dutch Supreme Court.

The Netherlands, Sweden Finland and four other countries are already facing legal action for maintaining state gambling monopolies; eight other countries may be added to the list. These countries defend their actions on grounds of protecting their citizens, but the European Court of Justice has said this argument is not valid if the countries in question encourage gambling on state lotteries or other betting services.

On 12 October 2006 the European Commission announced that it would send official requests for information on national legislation restricting the supply of certain gambling services to Austria, France and Italy; to verify whether the measures in question are compatible with Article 49 of the EC Treaty, which guarantees the free movement of services. Should the Commission finally take action against any state, the process would likely take years to resolve. (E-10.18.06)

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