The European Commission (EC) has closed its investigation into Ladbrokes‘ operations in Belgium. The investigation cleared the Entain-owned betting brand of breaching European competition law. The EC began the probe in 2020 after gaming operators Rocoluc NV and European Amusement Company claimed that Ladbrokes had received illegal state aid from the Belgian government. This aid was allegedly in the form of exclusive rights for virtual betting operations.
The complaints claimed that Kansspelcommissie, the Belgian gambling regulator, gave Ladbrokes an unfair market advantage in 2014 and 2015. They alleged that the regulator allowed Ladbrokes to offer online and retail virtual betting. This occurred before the regulator established a framework for the sector. The operators noted that other operators were denied the same permissions in 2015 and 2016.
Nevertheless, the EC concluded that Ladbrokes’ exclusive rights for virtual betting did not breach EU State aid rules. These rules are outlined in Article 107(1) of the TFEU, the Treaty on the Functioning of the European Union.
The Commission stated that informal email replies from the Belgian Gaming Commission to Ladbrokes did not qualify as an act granting aid under Article 107(1) TFEU. It also found that the Belgian State did not waive or forgo any resources that Ladbrokes should have paid for operating virtual betting.
Entain, then known as GVC Holdings, acquired Ladbrokes in a deal reached in December 2017. It continues to hold a license from Kansspelcommissie and has 300 betting shops across Belgium, occupying a significant market share.
In 2024, FTSE 100-listed Entain Plc saw mixed results. The company returned to organic growth. Restructuring costs, impairments, and write-downs led to a loss of £460 million. This was an improvement from the £900 million loss in 2023.
