In a surprising case that could have long-lasting ramifications for the online gaming industry, a Dutch court on April 17, 2024, ordered two online poker providers to refund losses to players. The two sites involved, BWin and PokerStars, must return approximately $450,000 to two players who brought cases against the brands.
Two Dutch players sought reimbursement from the two poker sites because the sites operated without valid licensure to offer online poker or gambling to players in the Netherlands.
Two players brought their cases forward to the Overijssel District Court in the Netherlands seeking to recover losses they incurred while playing online poker at PokerStars and Bwin (a sister brand of partypoker).
These cases are about happenings which took place prior to October of 2021 when online gambling became explicitly legalized in the Netherlands. The games in question took place between 2006 and 2021.
If the rulings are upheld, this could turn into quite the groundbreaking ruling. With this precedent being set, it seems as though other players who gambled from the Netherlands could seek refunds as well which could theoretically be quite catastrophic for certain online gambling providers, including PokerStars and Bwin but also any site that voluntarily accepted Dutch customers in the past.
Since 2021, Dutch law requires all prospective online gambling providers to apply for and acquire a license to enable them to offer online gambling to Dutch players. Curiously, both PokerStars and Bwin voluntarily exited the Dutch market in October 2021, a few months after the relevant legislation was passed. This was insufficient to protect them against the lawsuits concerning play during a period before then.
The first player discussed in the ruling is from the area of Staphorst and gambled from January 2018 to November 2019 at Bwin. The man lost a total of €187,622.
The second player, from Almelo, lost $230,705 at PokerStars over the course of fifteen years from 2006 to 2021. The man seemingly played poker, casino games, and bet on sports. Neither BWin nor PokerStars had valid licensure to offer online gambling of any kind to Dutch citizens.
The court ordered Bwin to reimburse €187,622 (about $201,000) plus statutory interest and €8,012 (approximately $8,600) in legal costs. PokerStars will have to refund $230,705 plus €400 (about $429) in statutory interest, €8,012 (around $8,600) in legal fees and €2,838 (nearly $3,050) in collection costs. The total bills work out to approximately $210,000 for Bwin and $240,000 for 'Stars.
While the court has made its decision, we can't help but wonder if this ruling will hold up. Although these gambling sites did not hold valid licensure, it seems a bit unreasonable that they should have to refund losses willingly incurred by gamblers.
Any player who decides to gamble seemingly knows what they are getting into. To void all losses based on a lack of licensure seems like a bold move that unfairly punishes gambling sites while putting none of the blame on the individual gamblers themselves.
PokerStars also argued that due to the nature of peer-to-peer poker, most of the losses incurred by the player went into the accounts of other users, and so penalizing the site for the entire amount was unfair. The judge did not buy this argument, noting that the amounts lost were first deposited into a PokerStars account by the individual in question then removed from the account as the player lost without being directly transferred to others. PokerStars then independently credited the accounts of those who won the money: a seemingly separate set of transactions according to the court.
As you might imagine, the lawyer involved in bringing these cases is very excited and optimistic that this ruling may open the door for many other players to seek reimbursement.
Benzi Loonstein is the lawyer for both of the players involved and he called this a “groundbreaking ruling.” Loonstein also continued by saying the following:
This is the first time that the judge has ordered online casinos to refund the bets made to players...The gambling companies have clearly ignored their duty of care. They can be reached 24/7 by people, while they do not see the damage being done. I assist clients who have gambled away their deceased parents' inheritance in a few days or whose savings account that was intended for their old age has disappeared. Such stories are very poignant…With the rulings made, the court has shown that the behavior of the online casinos was unacceptable and that the losses must now be reimbursed.
While Loonstein certainly makes a few decent points, he seems to completely ignore the player's role in gambling in the first place. Casinos do not force people to gamble. Any player who incurred losses purposely gambled at an online gambling site and they knew exactly what they were getting into.
Although the decision rendered several days ago in the Netherlands was in some ways unlike any that had come before, the country has a history of going after online gaming enterprises. Most often, this has come about through the activities of the country's gambling regulator, Kansspelautoriteit.
In August 2019, for instance, Bwin was fined €350,000 ($383K) for serving Dutch customers without a proper license. A month later, it was the turn of PokerStars, which was fined €400K ($438K) for similar infractions.
Despite this somewhat disheartening ruling, most areas around the world still offer safe and reliable options for online gambling.
Players primarily interested in playing poker may want to browse our comprehensive guides detailing the best online poker sites on offer.
Perhaps some will prefer casino gaming, like slots, blackjack, or video poker. If so, folks in the United States may want to check out our detailed guide regarding the best online casinos for US players.
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