Dutch Lottery Files Lawsuit to Stop Lalabet Operations

The tough action comes at a time when losses to illegal gambling are nearly equal to the profits of legal operators in the NetherlandsImage Source: Shutterstock.com

Despite robust gambling regulations across Europe, illegal gambling operators continue to offer their services, engaging with millions of players and generating revenues in millions of Euros.

The Netherlandsis among the markets where there is strict gambling framework established as a way to protect the consumers and reduce losses to gambling. However, unlicensed operators offer their services without any hassle, putting at risk the well-being of many Dutch players.

Losses to Illegal Gambling Are Estimated at Tens of Millions

In a move against illegal gambling, Nederlandse Loterij, the Dutch Lottery, is reportedly ngaking one illegal online gambling operator to court. That is the case based on a report from Financieele Dagblad, which suggests the Lottery filed a lawsuit against a Costa Rica-based company that operates a gambling website in the Netherlands without a license, Lalabet.

In 2021, the Netherlands legalized online gambling. Seeking to ensure the protection of the consumers, the country introduced strict regulations. Under the regulatory framework, limits for spending are set, while players who want to wager more need to prove that they can afford to and clarify their reasoning.

Now, under the newly filed lawsuit against Lalabet, the Dutch Lottery alleges that the operator is engaging in unfair competition by offering its services without a license. The case alleges Lalabet also doesn’t adhere to the established regulations, permitting Dutch consumers to gamble without limits. Equally as concerning, the Lottery alleges that it lost between €15 million($16.3 million) and €20 million($21.7 million) for 2023and 2024to Lalabet.

The announcement comes at a time when only recently, the Dutch Gambling Regulator, KSA, conducted a study on the effectiveness of player protection rules and methods. While the gambling limits are effective, the gambling watchdog acknowledged a notable decrease of 10% in the channelization rate to legal providerssince their implementation.

The Lottery Plans to Fight Illegal Gambling Operators

Arjan Blok, the Dutch Lottery’s CEO, spoke about the recently filed lawsuit and the impact of illegal gambling on the legal sector in the country. Notably, the executive vowed that the Lottery will fight illegal gambling operators starting with the “market leader” and will continue with others.

Blok explained that while in 2024, a monetary sanction was imposed by the KSA against Lalabet, its website remained online. Still, he outlined that while the website was previously operated by a company that declared bankrupt, it is now operated by a Costa Rica-based firm.

Blok revealed that the Lottery reached out to Metaand Googleas a way to prevent ads of illegal gambling operators appearing to Dutch customers and weeding out dangerous search terms such as “gambling without limits.” He also supported the idea of enhancing the regulatory authority of the KSAto be permitted to block access to gambling operators without a license offering services to Dutch customers.