Dutch Supreme Court rules against automatic refunds for illegal gambling losses

The Supreme Court of the Netherlands has ruled that gambling losses incurred with unlicensed online operators before the country’s regulated online gambling market launched on Oct. 1, 2021, are not automatically recoverable, dealing a setback to players seeking reimbursement for historical losses.

The ruling, issued in response to preliminary questions from the District Court of Amsterdam and the District Court of North Holland, held that gambling agreements entered into with unlicensed operators before the introduction of the regulated market are not automatically void under Dutch civil law.

The cases involved two Dutch players who sought to recover losses incurred with Malta-licensed operators before the Netherlands introduced its regulated online gambling framework.

One player lost $139,464.58 while playing on PokerStars, operated by TSG Interactive Gaming Europe Ltd, between 2006 and 2021. Another lost 135,137 euros ($158,000) on PartyCasino, operated by ElectraWorks Europe Ltd, between August 2020 and July 2021.

Both plaintiffs argued their gambling agreements were void under Article 3:40 of the Dutch Civil Code, which invalidates legal acts that conflict with public order or mandatory statutory provisions.

The Supreme Court concluded that while the Dutch Games of Chance Act prohibits unlicensed gambling, it does not invalidate gambling contracts under civil law. It also rejected the argument that the country’s 2021 online gambling legislation was intended to invalidate contracts entered into with unlicensed operators.

The decision is a significant victory for gambling operators facing claims over historical player losses. Entain, whose brands include PartyCasino, welcomed the ruling.

“Bwin, PartyCasino and PartyPoker welcome the Supreme Court’s ruling,” an Entain spokesperson said. “It confirms the position they have consistently maintained, which is that gambling agreements entered into before 1 October 2021 are valid, and that any historic gambling losses incurred cannot be recovered on the basis that those agreements were void.”

The spokesperson added: “In light of the court’s decision, any attempt to pursue such claims, whether individually or collectively, is no longer tenable.”

The ruling comes as courts across Europe continue to grapple with player-loss litigation involving unlicensed gambling operators.

Recent European Court of Justice rulings in cases from Germany and Austria have generally left the issue to national courts, reaffirming that EU law does not override domestic gambling licensing regimes.

In January, the court ruled in an Austrian case that player-loss claims should be decided under local gambling laws, while an opinion issued in March in a case involving German operator Tipico similarly supported national licensing frameworks, provided they comply with EU rules on the free movement of services.