Dutch Supreme Court rules against automatic refunds for illegal online gambling losses

Many people who lost money gambling with unlicensed online casinos are likely to be unable to recover their losses. Although numerous players have taken legal action in recent years to reclaim their money, the Supreme Court ruled on Friday that contracts between players and illegal online gambling operators are not inherently invalid.

The ruling deals a significant blow to Dutch gamblers seeking to reclaim losses from unlicensed online casinos through the courts. Lawyer Benzi Loonstein said the issue could affect hundreds of thousands of players in the Netherlands and involve potentially hundreds of millions of euros in lost gambling funds.

The Supreme Court did, however, leave the door open for individual gamblers to recover their losses in specific cases. It said the ruling "does not preclude such agreements from being annulled under certain circumstances, for example, on the grounds of mistake, or from giving rise to a claim for damages based on an unlawful act."

Several organizations, including law firm Loonstein Advocaten, have filed mass claims against operators of online gambling platforms such as Unibet, Bwin, and PokerStars. Because online casinos were illegal in the Netherlands until October 2021, the lawyers argued that gambling agreements made before then were invalid, entitling players to reclaim the money they lost.

In two online gambling cases, Dutch courts asked the Supreme Court to clarify whether contracts with unlicensed gambling websites are automatically invalid. The Advocate General had already indicated that gamblers cannot simply assume they are entitled to recover their losses, concluding that such agreements are not inherently void solely because the operators lacked a Dutch license.

The decision is expected to have broad implications for similar lawsuits. Courts handling comparable cases will now resume proceedings using the legal guidance provided by the Supreme Court.

Lawyer Loonstein called the ruling “disappointing for many players,” but said it at least brings “clarity to a legal debate that has been ongoing for years.” He noted that the Dutch Supreme Court's approach differs from that of the highest courts in Germany and Austria. “In those countries, gambling agreements with illegal operators are not regarded as valid, whereas the Dutch Supreme Court considers the same types of agreements to be valid. That is surprising,” he said.

Loonstein said his firm is now assessing what avenues remain available for players to pursue compensation and recover money lost to unlicensed online gambling operators.