The Netherlands Commercial Appeals Tribunal dismissed a challenge to the union of the Dutch National Lottery (SENS) and the National Sports Lottery Foundation (SNS). The combination was authorized by the Dutch Authority for Consumers and Markets (ACM) in 2015.
The Dutch court rejected a late challenge to the lottery merger, which was submitted after the merger under the ACM’s Competition Act, alleging that the merger would result in a decline in competition in the Dutch gambling sector.
When the merger was initially proposed, the ACM determined that it required authorization, which was subsequently granted in December 2015. However, it ultimately concluded that the merger of SENS and SNS would not significantly diminish the competitive nature of the market.
It observed that there was another competitor in the lottery game market, comparable in size to the applicants, namely the National Charity Lottery, which operates the National Postcode Lottery, Bank Transfer Lottery, and Friends Lottery.
To ascertain whether the merger of the lotteries would disadvantage competitors, the ACM investigated the extent of existing competition.
The panel also examined whether the merging entities could potentially influence the quality of one or more lotteries or games.
The panel believes that the merger is improbable to have a significant detrimental effect on competition in the lottery market.
The panel stated that alterations in competitive factors, such as ticket costs, prizes, and payout rates, have a limited effect on the quantity of tickets sold by another merging partner.
The ACM also pointed out that the country’s regulation of online gaming will actually provide more opportunities for private operators to contend for customers. It added that there is no evidence that the merged lottery business would be able to use this position to gain an unfair advantage in other areas.
The Dutch Online Gambling Association (NOGA) subsequently released a statement saying that the ACM’s decision was “disappointing.”
NOGA stressed the significance of fair competition in the market, particularly for the gambling industry, noting that the Dutch gambling market will be dominated by the lottery monopoly until the online market opens next September.
The association urged all stakeholders to ensure that the Netherlands has a healthy, safe, and appealing gambling market, and to provide customers with secure and dependable options.
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