THE HAGUE, 31/08/06 - In a letter to the European Commission, the Dutch government has repeated that the Dutch policy on gambling does not violate European rules. Justice Minister Piet Hein Donner has informed the Lower House about the letter.

The Netherlands sent the letter in reaction to criticism from European Internal Market Commissioner Charlie McCreevy, who expressed strong criticism of the Dutch gambling monopoly in a letter written in April. This does not comply with the free traffic of services, in his view, as Donner allows only state company Holland Casino to operate casinos.

Donner however claims the monopoly is justified because Holland Casino also tries to prevent gambling addiction and to counter money laundering, in his view. The European Commission does not consider these arguments valid. Donner does reason that the policy makes it possible to impose restrictions on the free traffic of services.

Donner does wish to call a halt to the expansion of Holland Casino. He "sees no reason" to permit the state company to open more casinos "in the Netherlands or elsewhere". Nor is "the operation of cinemas or shops by Holland Casino an item for discussion".

In newspaper NRC Handelblad of 31 July, director Henk Kivits of Holland Casino talked about expansion plans at home and abroad, which do not fit in with the restrictive gambling policy. But according to Donner, Kivits meanwhile "regrets that the representation of his words in the newspaper was inaccurate".