Entain-owned Ladbrokes has been cleared by the European Commission (EC) of anti-competition breaches in Belgium.
An investigation by the EC was first launched in 2020 after a complaint was filed by gaming operators Rocoluc NV and European Amusement Company, which expressed concerns of “state aid” being granted to Ladbrokes.
Both entities claimed that in 2014 and 2015, the Belgian state and its regulator, Kansspelcommissie, had given Ladbrokes an unfair market advantage by authorising it to operate online and retail virtual betting without having a specific framework to regulate the vertical at that time.
As further evidence, it was said that the gambling authority refused the same rights to other operators between 2015 and 2016, specifically citing ongoing efforts to regulate the space.
A five-year probe into the matter then ensued, with the EC examining whether the arrangements constituted a breach of EU State aid rules, and particularly of Article 107(1) of the Treaty on the Functioning of the European Union (TFEU).
In its conclusion, the Commission established that the Entain operator had not received State aid in the form of exclusive rights to operate virtual betting.
“The Commission found that informal email replies sent by the Belgian Gaming Commission to Ladbrokes did not qualify as an act granting aid within the meaning of Article 107(1) TFEU,” the statement read.
“Moreover, the Commission found that the Belgian State did not waive or forgo any resources which should have been paid by Ladbrokes for operating virtual betting.”
Market foothold in Belgium
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Ladbrokes is fully licensed by the Kansspelcommissie to offer sports betting on the largest sports in Belgium, such as football, tennis, F1, cycling, horse racing, and more. The company controls a significant share of the local market, operating around 300 betting shops across the country.
The Entain brand is closely tied to the Belgium sports sector as part of its corporate responsibility strategy, syphoning money back into grassroot and professional sports.
However, recent rules to limit sports sponsorships from gambling companies in the country will require a new strategy to operate in the landscape.
Front-of-shirt sponsorships by companies that directly operate games of chance have been banned. Instead, teams can enter into agreements with other entities tied to gambling operations, such as foundations and sports infotainment websites.
As the new rules were enforced at the start of this year, the waters are still murky in terms of implementation and scope. For one, Royal Francs Borain, a football team in the second-highest Belgian football league, still displays the Ladbrokes logo on its shirts.
Regardless of what Belgian sports regulations shape up to be by the end of the year, Ladbrokes is well-suited to navigate the evolving space and continue its collaborations within sports thanks to its Ladbrokes Foundation.
