Dutch gambling giants face legal battles in class action lawsuits

Sudhanshu Ranjan September 27, 2024

The Dutch online gambling industry has undergone significant changes in recent years, with the most dramatic shift occurring in October 2021, when online gambling was officially legalised. Previously, Dutch law prohibited online gambling, yet many foreign operators continued to offer their services. Now, the Dutch Supreme Court is expected to issue a final decision on a pivotal case.

Legalisation of online gambling

In October 2021, the Netherlands introduced its regulated online gambling market, allowing companies to obtain licences to operate legally. This move brought more oversight and consumer protection. In April, a Dutch court made waves in the legal community when it ordered two unlicensed online gambling companies to repay players who had lost significant amounts of money, approximately $224,000 each.

Since the April ruling, class action lawsuits have gained momentum, with players seeking to recover losses incurred before the legalisation of online gambling. These lawsuits are being spearheaded by foundations like Gokverliesterug and law firms such as Loonstein Advocaten. Loonstein Advocaten, led by lawyer Benzi Loonstein, has attracted over 20,000 participants in a mass claim against online gambling companies.

The foundation Gokverliesterug is one of the leading voices demanding that companies repay losses incurred before the October 2021 legalisation. Representing the interests of Dutch consumers, lawyer Koen Rutten argues that many foreign online casinos disregarded Dutch rules, believing they wouldn’t be held accountable. Rutten stated, “Many foreign online casinos ignored Dutch rules for years, assuming they would not get caught. They must be held to account for that period, even though they now have licences.”

Before October 2021, online gambling was illegal in the Netherlands. However, international companies like Unibet, Bwin, and Pokerstars continued to operate within the country despite the legal restrictions. For Dutch players, the Supreme Court’s decision represents a potential victory in their fight for justice. If the ruling is in their favour, players could see substantial financial compensation for their losses.

Growth in licensed operators

As of today, there are 27 companies with 37 different brands licensed to operate in the Dutch market, and this number is expected to increase. Hard Rock Casino NL has partnered with BetComply to secure a Dutch licence, further illustrating the competitiveness of the market. As more companies seek to enter the regulated Dutch market, partnerships like this one are becoming increasingly common, highlighting the growing interest in the Netherlands as a key player in the global online gambling industry.