Läärä: Finnish slot-machine monopoly compatible with EU law: Allegations, Court Orders and Status

What this case is about

C-124/97 is the Court of Justice of the European Union (CJEU) judgment of 21 September 1999 in Markku Juhani Läärä, Cotswold Microsystems Ltd and Oy Transatlantic Software Ltd against the Jyväskylä prosecutor (Kihlakunnansyyttäjä) and the Finnish State (Suomen valtio). It came to Luxembourg as a referral from Vaasan hovioikeus.

The case arose from a Finnish prosecution for operating slot machines outside the exclusive right of Raha-automaattiyhdistys (RAY). The claims invoked Articles 30, 36, 56 and 59 of the EC Treaty on goods and services. It belongs to the Licensing and Administrative Court Cases that test state monopolies.

Who is covered

The judgment is addressed to the referring Finnish court and to Member States with gambling monopolies. The three companies and persons named as parties were the subjects of the Finnish proceedings.

Its reasoning reaches any Member State that gives one public body the exclusive right to run slot machines. Other EU rulings of this kind are collected in Gambling Lawsuits in European Union.

Is there a payout?

No payout exists in this case. It is a preliminary ruling on EU law, and the record shows no fund, no damages award and no claim process for players.

What the court decided

The Court of Justice decided the case on 21 September 1999, and the status is judgment. As of 14 November 2026 the record lists no later step.

The Court held that a national rule giving a single public body the exclusive right to operate slot machines restricts the freedom to provide services.

It also held that the rule is justified by the aim of limiting the exploitation of the human passion for gambling and of preventing crime. The record calls it the Court's second gambling judgment after Schindler.

Why it matters

The record marks this as a precedent. It is cited in every later Nordic monopoly case, including Sjöberg, Norsk Lotteri and Trannel, which makes it a starting point for reading how EU law treats gambling monopolies.

For the wider group of operator and regulator disputes, see Licensing and Administrative Court Cases: Operators Against Regulators and States.

Related cases

• KKO:2005:27 (Ålands Penningautomatförening, PAF, internet games in mainland Finland): a Finnish Supreme Court judgment of 24 February 2005.
• C-42/02 Diana Elisabeth Lindman v Skatterättelsenämnden: a Court of Justice judgment of 13 November 2003 on tax on foreign lottery winnings.

Questions people ask

What did the Court decide in Läärä?

On 21 September 1999 it held that giving one public body the exclusive right to operate slot machines restricts the freedom to provide services but is justified by limiting gambling and preventing crime.

Did Läärä lead to a payout?

No. It is a ruling on EU law with no fund, fine or claim process in the record.

Which later cases rely on Läärä?

The record says Sjöberg, Norsk Lotteri and Trannel cite it, alongside every other later Nordic monopoly case.