Rotterdam Court Orders Betsson to Repay Over €500,000 to Customer for Unlicensed Gambling
In a landmark ruling, the Rotterdam District Court has directed Betsson to reimburse a player over €500,000 (£429,630/$568,483) after determining that the funds were lost on unauthorized gambling sites.
The plaintiff, referred to as "Eric" in legal documents, initiated a lawsuit against BML Group Limited and Corona Limited concerning losses he incurred while engaging with their unlicensed gambling platforms.
The dispute traces back to 2014 when Eric made his initial deposit. During that period, online gambling was prohibited in the Netherlands; nevertheless, he was able to gamble through various casinos run by BML and Corona, including popular names like Betsson, Kroon Casino, and Oranje Casino.
In total, Eric reported depositing €385,378 into these unregulated websites. The central question of the case was whether these funds should be returned, given that the gambling activities were not conducted in compliance with the law.
Court Declares Gambling Agreement Invalid
The courtroom proceedings last week revealed that Betsson failed to appear, resulting in a default judgment that favored the plaintiff.
The court’s ruling determined that the gambling agreements between Eric and the online operators were "null and void," primarily because the platforms lacked the legal permission to operate in the Netherlands. Consequently, Betsson was mandated to refund the €385,378 the customer had gambled on these sites.
Additionally, the court ruled that Betsson would owe interest dating back to the time of the first deposit in 2014, which amounted to €144,622. Therefore, the total sum owed to Eric now stands at nearly €530,000, supplemented by about €5,751 in legal fees.
Deepak Thakoerdien, founder of Dynamiet Nederland, the legal representation for the customer, commented, “This decision validates that impacted gamblers have the right not just to recover their losses, but also to claim interest on those funds. When compounded annually, this can result in a significant increase, as demonstrated in this case.”
In response to inquiries from iGB, Betsson indicated that it is currently evaluating the court’s ruling and considering its future actions.
Another Setback for Betsson in the Dutch Market
This ruling marks the second legal setback for Betsson within the year stemming from its unlicensed operations in the Netherlands.
Earlier, a court in Noord-Nederland found that Betsson had been facilitating online gambling in the country without the requisite license and mandated it to repay €119,634, along with statutory interest.
Despite its ongoing challenges, Betsson does not hold a license to operate in the Netherlands. Although it submitted an application, the company opted to withdraw it in July 2023, citing "significant delays" encountered throughout the licensing process.
Nonetheless, there is potential for Betsson to establish itself in the regulated Dutch market soon. The firm announced plans to acquire licensed operator Goldrun, a transaction expected to be finalized in February 2024, pending approval from the regulatory authority, Kansspelautoriteit.