In a significant legal development, foreign gambling providers, Bwin and Pokerstars, have been ordered by Dutch courts to repay large sums of money lost by gamblers. This decision comes against the backdrop of these companies operating without a license in the Netherlands during the periods their services were used by the plaintiffs.
Background of the Cases
In two separate cases, individuals from Staphorst and Almelo suffered substantial financial losses through online gambling platforms provided by Bwin and Pokerstars, respectively. The gambler from Staphorst lost 187,000 euros between 2018 and 2019, while the Almelo resident lost 217,000 euros between 2006 and 2021. Notably, both companies did not hold licenses to operate in the Dutch market during these periods.
Legal Landscape
Until April 1, 2021, the Dutch government had not issued permits for the online gambling market, despite its flourishing state. This issue was highlighted as early as 2012 when the Supreme Court ruled on the illegal offerings by international gambling companies. Despite the ruling, these companies remained accessible to Dutch users, largely due to the global nature of the internet and the difficulty in enforcing such regulations.
Court’s Ruling
The courts’ decisions to order repayments were based purely on factual grounds—the absence of a required license to operate legally within the Dutch market. This factor alone was sufficient for the annulment of agreements made with Dutch customers, mandating the gambling providers to reimburse the losses incurred.
Implications and Future Prospects
According to lawyer Benzi Loonstein, who represents dozens of affected individuals, this landmark ruling is expected to trigger a series of lawsuits against similar service providers. Loonstein emphasized the negligence of these companies in fulfilling their duty of care towards consumers, pointing out the ease of accessibility and the lack of safeguards against potential harm.
He drew a parallel to the drug market in terms of the massive scale and the anonymity providers assume in avoiding detection. The legal actions underline a growing recognition of the need for stricter regulatory oversight and accountability in the online gambling industry.
These cases serve as a critical reminder of the responsibilities that online gambling companies have towards their users. With the Dutch courts taking a firm stance on the need for licensing and compliance, the gambling industry faces.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.