Changes in Dutch gambling laws in October 2021 paved the way for legal online gambling. This development led to several individuals who had lost considerable amounts of money prior to the legalization, to initiate lawsuits, arguing that their previous losses were unlawful. The Dutch court’s ruling has been protested by Unibet, who plans to revisit the case and challenge the decision.
Unibet Reportedly Functioned Without Authorization
The court ruled that the gaming giant, Unibet, has to repay €93,000 ($99,902) to one player. In addition, an anonymous gaming firm was instructed to return an amount of €124,000 ($133,203). These verdicts were deemed as default judgments due to the defendants’ failure to respond. A representative from Unibet clarified that the company’s non-response was a result of human error and assured that the company will exercise its legal rights.
Attorney Benzi Loonstein, who represents several aggrieved gamblers, including the ones in these cases, stated that his clients were satisfied with the verdict, even though they anticipate an ongoing legal dispute. The judges of both cases concurred with his points, implying that Unibet is likely to confront a significant hurdle in challenging this verdict.
In simple terms, a company infringing the law has no legal claim over the profit generated via illegal means.
Lawyer Benzi Loonstein
The Netherlands isn’t the sole country grappling with these issues. Similar court cases in Germany and Austria have seen a success rate of almost 100%. These lawsuits, predominantly against gambling firms, have correlated to at least almost 7,000 cases and recovered millions of euros, the underlying argument being that illegally operating companies have no right to profits from contravention activities.
Growing Pressures on Unibet
If Unibet’s appeal isn’t successful, it could face potential long-term implications as more customers may try to claim compensation legally. With the amassed legal victories against gambling operators across major European jurisdictions, the legal team of Unibet is under substantial stress. These pressures follow a string of legal battles the company has faced in other European markets governed by tightening regulations.
In September, Kindred, the parent company of Unibet, ceased operations in Norway following a lengthy and expensive legal skirmish. The court accused the operator of illegally conducting business amidst Norway’s escalating efforts to regulate its gambling market. This event caused a substantial setback to Kindred’s vision to expand into European markets, and the recent troubles in the Netherlands have further threatened its credibility.
In Malta—home to many casinos, including Unibet—this new wave of refunds has generated substantial apprehensions. Following the revision of gambling law in June with Bill 55, the jurisdiction has allowed gaming companies to override foreign rulings for refunds, creating a bulwark against such claims. This contentious law is currently under investigation by the European Commission due to potential conflicts with EU regulations.
