Following the familiar refrain of online gambling companies facing resistance in foreign territory, Betfair is issuing a legal challenge against the Netherlands via the European Commission.

In February, the Dutch government sent a letter to financial institutions asking them to block internet gambling transactions as it was "inappropriate for banks to provide facilities to the providers of illegal games of chance," said the timesonline.co.uk citing the letter.

The move is reminiscent of the United States' UIGEA and Betfair contends that the move was made, not because online gambling is "inappropriate" but rather it infringes on the Netherlands' gambling monopoly De Lotto.

"This is a desperate move by the Dutch government to prevent a company that is fully licensed and regulated in jurisdictions across Europe from being accessed by residents in the Netherlands," explained Betfair MD Mark Davies through a release.

Like many other similar cases, Betfair has filed a complaint against the Netherlands saying that by preventing Betfair to offer its services within its borders, it is violating European Union regulations permitting free trade amongst member states.

"The Government’s objective of shutting out foreign operators while feather-bedding domestic monopolies and protecting a cozy cartel cannot be allowed to continue," Davies said.

This isn't the one and only online gambling spat between EU nations and online gambling companies.

Ladbrokes has also taken legal action against the Netherlands for its restrictive and protectionist rules regarding gambling.

"We believe that Dutch law is in contravention of EU law and we are very much of the same view as Betfair," a spokesman is quoted as saying in the independent.co.uk.