LONDON, May 7 /PRNewswire/ -- Betfair, one of the world's leading online betting companies,has started legal action against the Dutch government in a court case whichcould result in a claim for damages running into millions of Euros.

The decision follows a letter from the Dutch Ministry ofJustice urging Dutch banks not to process payments from any Dutch customerswishing to place a bet on any legal gaming website. The measure would blockaccess to the services of Betfair and many other UK licensed operators.

Mark Davies, Managing Director at Betfair, said:

"This is a desperate move by the Dutch government to prevent acompany that is fully licensed and regulated in jurisdictions across Europefrom being accessed by residents in the Netherlands. Its actions are againstthe interests of the Dutch consumer and fly in the face of the EU principlesof open and fair competition. This serves only to protect the Dutchgovernment's own gaming monopoly and keep prices high.

"It is madness that the Netherlands, as one of the foundingmembers of the single market, has resorted to illegal tactics that preventconsumer choice and go against the Treaty.

"The government's objective of shutting out foreign operatorswhile feather-bedding domestic monopolies, one a big US multinational, andprotect a cosy cartel cannot be allowed to continue. We will fight this. Wewill fight anyone who unlawfully prevents us and our customers from doingbusiness."

Betfair has also made a formal complaint to the EuropeanCommission stating that the government's action unlawfully protects the Dutchgaming monopoly and violates EC laws concerning the free movement of serviceswithin the EU.