Online gambling companies must pay back money to players due to lack of license
A court in The Netherlands has ruled that two online gambling providers must pay back the money that two players lost gambling online. The players started proceedings because the gambling providers did not have a license to offer online gambling in the Netherlands at the time.
Under the Gambling Act, it is prohibited to offer gambling (online) without a license. The players therefore believe that they should get their lost money back.
The court ruled that the gambling agreement concluded between the gambling company and the player is null and void due to the violation of the Gambling Act. The gambling companies must therefore pay the players their money back. Both players lost around 200,000 euros.
No license
The gambling companies acknowledge that they did not have a license to offer online gambling in the Netherlands, but argue that violating the prohibition of the Gambling Act does not lead to a null and void agreement, because that is not the purpose of the prohibition.
If the prohibition does have that purpose, then according to the gambling companies, it has now lost that purpose. The court does not follow these arguments and rules that the gambling agreement concluded between the parties is null and void. This means that the gambling companies must pay the lost amounts back to the players.
Additional information:
- The Gambling Authority (Kansspelautoriteit) is the Dutch government agency responsible for regulating gambling.
- Online gambling was legalized in the Netherlands in 2019.
- Only licensed operators can offer online gambling in the Netherlands.
- Players can check the validity of a gambling license on the website of the Kansspelautoriteit.
