According to various reports, the Dutch Senate has narrowly rejected a plan that would have given state-owned Holland Casino the green light to enter into the online gambling domain.

Under the proposed pilot plan, Holland Casino was to be granted exclusive license to open up an online casino which was to cater to punters in the Netherlands.

Although the plan had been approved by a lower house of the Dutch Parliament two years ago, the Dutch Senate vetoed the proposed online Holland Casino plan by a vote of 35-37.

The vote is no doubt disappointing to CryptoLogic, who had been helping to develop the new Holland Casino site, but the online gaming company said it was prepared for this.

"While advocates of safe, secure and regulated e-gaming are disappointed with the Dutch decision, CryptoLogic never places all its bets on one table," said Crypto CEO Brian Hadfield.

"That’s why this decision will have no material impact on our business. We recognized the challenge in Holland early and prepared our business by accelerating other revenue-generating initiatives."

The Dutch government is already under European Union scrutiny for a decision involving state owned lottery, De Lotto and Unibet and there are suggestions that a state monopoly on online casinos would not be looked upon favorably by the European Commission branch of the EU.

The EC had given the Netherlands a final warning in February to stop monopolization of online gambling or risk sanctions.