The internal markets commissioner for Europe, Charlie McCreevy, threatened to pursue the government as far as the European Court of Justice recently following attempts to block Dutch banks from processing the payment of bets made over the internet.

"We believe the Dutch are in direct contravention of the rules of the internal markets and will be investigating the matter," said McCreevy.

Last week, Betfair filed a lawsuit against the Dutch Ministry of Justice regarding its move to block payments. The ministry recently wrote to banks urging them to end all relationships with internet gaming operators; the government department claimed it was inappropriate for banks to provide facilities to the providers of illegal games of chance because Dutch laws do not allow for the licensing of internet gambling companies.

Betfair claims it is allowed to accept bets because it is a licensed operator in Europe and because Dutch residents are allowed to bet online with De Lotto. McCreevy has fought a long running battle with European governments, including the Dutch, to try and reduce protectionism towards gambling.