The European Union does not allow any of its member states to restrict exchange of services from other member states. Except sometimes it does. Such is the complex and ridiculous nature of international diplomacy. Despite the fact that EU rules do not allow any member state to ban or restrict access to their online gambling market, many member nations have done just that. Sometimes, such as with Portugal last year, they have even successfully defended their position in the European Court.

Now it seems that Cyprus may be the next European country to ban online gambling. The Mediterranean nation has never been a fan of gambling and does not permit any brick and mortar casinos. In 2004, the country joined the European Union and in 2007 came into compliance with EU rules regarding online gambling. It is estimated that Cypriot citizens spend approximately €2.5 billion on internet gambling per year.

However, the nation recently appealed to the European Commission for a ban on online gambling. Last year, Portugal won the right to restrict the activity because the convinced the court that it was necessary to combat crime. Cyprus is making the same argument.

The local media for some time has been reporting that organized crime has become a problem in Cyprus. For some in the government, online gambling is the root of that problem. Michalis Katsounotos, a police spokesman, stated that online gambling is the root cause of “loan sharking, or threats, or blackmail or even taking people hostage illegally.”

Leaving aside questions about whether there is a legal way to take people hostage, it seems clear that the Cypriot government sees internet gambling as a scourge. Despite that, it’s interesting to note that Cyprus’s proposed ban would not do away with all forms of gambling. Games such as poker, blackjack and slots would be made illegal, but online sports betting would still be allowed. It seems to me that loan sharking is more common for sports betting than slots, but maybe I’m wrong. The proposed restrictions would also ban cash bets, allowing only credit card and e-wallet transactions for betting. That would make the transactions easier for the authorities to track.

If the European Commission approves of Cyprus’s restrictions, the new gambling law could go into effect before the end of the year.

This is one of the problems – one of many – with giving up your nation’s sovereignty to join a collective, such as the European Union. EU nations can’t simply pass their own laws and then be done with it. Those laws then have to be submitted to the EU’s European Commission (EC) or European Court of Justice (ECJ) to ensure that the law is not in violation of EU rules and laws. In the case of online gambling legislation that has become more popular in Europe, this has become a major issue.

Romania is the newest country to have their online gambling laws run afoul of the European Union rules. A recent draft law liberalizing online gambling in the nation was sent to the EC for review and the ruling was that it is not compatible with EU law. As is often the case, the rules rejected by the EU relate to protecting the interests of Romania, because the EU isn’t a fan of a member state looking out for their own best interest.

The Romanian online gambling draft law requires applicants for licenses to locate their servers in Romania. In addition, it only allows online gambling companies to advertise and market in Romania if they possess a Romanian gambling license. According to the Romanian government, such provisions are in the law in order to protect the people. Having the servers located in the country makes them easy for Romanian regulators to inspect. The ban on unlicensed advertising is meant to make sure only trusted companies can cater to the Romanian market.

The European Commission, when rejecting the draft law, instead said that the real reason for the provisions was protectionism, making sure Romania benefits from the gambling revenue and licensing revenue. That may be true, but why is that a bad thing? To the EU, it is, because they want every member state acting in the interests of the collective instead of in their own interests. Again, that is the problem with surrendering your sovereignty.

Now it is back to the drawing board for Romania, who must draft new legislation that meets the EU’s requirements. In the meantime, the people of Romania will suffer from not having a gambling law passed.

In a surprise move, the European Union’s Court of Justice (ECJ) ruled that the Netherlands could block Ladbrokes and Betfair, the popular bookmaker and betting exchange, from offering bets to Dutch gamblers if the reason for the ban was to protect against “fraud and crime.”

All members of the European Union have a free trade agreement that prohibits banning foreign goods from another EU nation in favor of domestic competition. For that reason, in 2008 the Dutch Supreme Court asked the ECJ to rule on whether their position of banning those sites was compatible with EU law.

Representatives from Ladbrokes and Betfair were predictable disappointed. They say that while the Netherlands claim to be concerned with gambling addiction and corruption, their real reason for the ban is to preserve the state-run monopoly on the gambling market in the form of De Lotto.

A spokesman from Ladbrokes said that the stance of the Netherlands was “hard to reconcile with its expansive gambling policy, which is characterized by the introduction and active advertising, marketing and promotion of new gaming products.”

It seems that the Netherlands thinks that gambling is dangerous unless it’s under the control of their government. That’s a common theme among the more authoritative governments and as a monarchy, the Netherlands certainly belongs to that group. I guess Queen Beatrix doesn’t trust the people to make their own decisions about what kinds of bets to make and what people to do business with. Therefore, she will make the decision for you. How kind and protective of her.

In response to the ECJ ruling, Betfair’s European public affairs chief, Tim Phillips, said that the judgment “once again demonstrates the need for the European Commission to take a lead on this issue, so that we can…settle the online gambling debate once and for all.” He and others calls for the EC to pass online gambling legislation at the EU level that would strictly and clearly state the rules each member nation must follow regarding online gambling.