The Supreme Court of the Netherlands has issued a significant ruling regarding the validity of player losses linked to unlicensed online gambling operators. The court decided that players are not automatically entitled to reimbursement for losses incurred prior to the legalization of iGaming in the Netherlands in 2021.
This ruling, handed down on Friday, followed inquiries from the District Court of Amsterdam and the District Court of North Holland about two specific cases. Players in question were gambling with operators licensed in Malta before the Dutch regulatory framework for online gambling came into effect.
One individual reported a loss of $139,464.58 while playing on PokerStars, operated by TSG Interactive Gaming Europe Ltd, from 2006 to 2021. Another player lost €135,137 gambling with PartyCasino, operated by ElectraWorks Europe Ltd, between August 2020 and July 2021.
These players sought to have their contracts declared void to reclaim their losses. The courts needed clarification on whether the Dutch Civil Code's Article 3:40, which voids contracts that contradict public order or statutory mandates, was applicable in these scenarios.
The Supreme Court ruled that the Dutch Games of Chance Act, which governs gambling and prohibits operations without a license, does not invalidate such contracts under civil law. The court dismissed claims that the 2021 regulations aimed to invalidate contracts made with unlicensed operators.
A spokesperson for Entain praised the ruling, stating that brands such as Bwin, PartyCasino, and PartyPoker welcome the court's decision. They emphasized that it affirmed the validity of gambling agreements made before October 1, 2021, and that past losses cannot be reclaimed on the grounds of these agreements being void. They added, "Given the court's decision, pursuing such claims—individually or collectively—is now untenable."
The European Court of Justice (ECJ) has recently dealt with similar cases regarding player losses in Germany and Austria, as various national courts sought guidance on the legitimacy of player contracts predating established gambling regulations. However, the ECJ’s responses have often left stakeholders uncertain, reinforcing that local licensing rules must prevail.
In January, the ECJ ruled in a case involving an Austrian player that losses should be adjudicated based on local gambling laws when monopolies are present. A subsequent ruling in March concerning German operator Tipico reiterated that operators must comply with local regulations, provided they align with EU principles.
The ongoing lack of clear directives from the ECJ on player losses has left the sector seeking answers. Claus Hambach from the German legal firm Hambach & Hambach expressed frustration, stating that despite numerous requests for clarity over several years, significant legal uncertainties remain unresolved.
