The Dutch Lottery, operator of well-known brands like Staatsloterij and TOTO, has filed a lawsuit against the Costa Rica-based gambling provider Lalabet, accusing it of illegal operations within the Netherlands. This lawsuit highlights ongoing issues with unlicensed gambling sites that skirt Dutch regulations, offering services without adhering to the strict laws set in place for legal gambling operators. The Dutch Lottery asserts that this action is not primarily about seeking financial compensation but is rather a critical move to protect Dutch players and ensure the integrity of the national gambling market.

Lalabet has long been a target of the Dutch Lottery, which claims the company is one of the largest unlicensed gambling operators in the Netherlands. Despite previous regulatory actions, Lalabet continues to operate its site in defiance of local laws, according to Financieele Dagblad. In 2023, the Netherlands Gambling Authority (KSA) imposed a hefty fine on the company’s former parent entity, Casbit Group, for violating gambling regulations. However, the penalty did not lead to a full cessation of Lalabet’s operations, as the company managed to shift its operations to another gambling group after Casbit’s bankruptcy. Lalabet’s ability to bypass regulatory efforts has prompted the Dutch Lottery to seek stronger legal measures, pushing for the immediate cessation of its activities.

According to Arjan Blok, the CEO of the Dutch Lottery, cited by NL Times, this lawsuit is a necessary step to curb the damaging impact of illegal gambling operators that operate freely without adhering to player protection regulations. These protections include advertising restrictions, self-exclusion mechanisms, and responsible gambling measures, all of which are disregarded by illegal sites like Lalabet. Blok emphasized that while the financial damage to the Dutch Lottery—estimated at €15 million to €20 million due to illegal competition—is significant, the primary concern remains safeguarding Dutch players from unregulated gambling risks.

The Financial and Social Impact of Unlicensed Operators

The ongoing presence of illegal gambling sites like Lalabet has far-reaching consequences. Not only does it undermine the Dutch legal gambling market, but it also exposes vulnerable players to greater risks. These unlicensed operators often lack proper safeguards, making it easier for individuals, particularly young adults, to fall into problem gambling. The Dutch Lottery argues that this creates an unfair playing field, where legal operators are forced to adhere to strict advertising and deposit regulations while illegal providers offer unrestricted bonuses and other enticing offers that appeal to at-risk players.

Blok’s concerns align with recent discussions in the Netherlands Parliament regarding potential updates to the gambling laws. One notable proposal from State Secretary for Legal Protection Teun Struycken includes raising the minimum age for high-risk gambling to 21. There is also a push to impose stricter advertising and deposit limits across all licensed operators. However, Blok stresses that to combat the rise of illegal gambling, the authorities must focus on stronger enforcement of existing regulations. This includes the enforcement of IP blocking and increased penalties for platforms that facilitate illegal gambling activities, including payment providers and affiliates.

The Larger Fight Against Illegal Gambling in the Netherlands

The lawsuit against Lalabet is only one part of the broader struggle against illegal gambling in the Netherlands. Industry stakeholders, including the Dutch Lottery and licensed operators, have called for stronger enforcement mechanisms to close the regulatory loopholes that allow unlicensed sites to thrive. Operators like Circus.nl have pointed out that the aggressive marketing tactics of illegal sites, such as offering high bonuses and unlimited wagering limits, attract players who would otherwise engage with regulated platforms.

Furthermore, the recent gambling industry forum held in parliament highlighted the need for more stringent actions against illegal providers. KSA proposed a unified advertising framework that would prevent all unlicensed operators from promoting their services. It also recommended the introduction of a ban on all gambling ads unless explicitly authorized, similar to tobacco advertising restrictions. This proposal reflects growing concern over the impact of unrestricted online gambling advertisements, particularly on vulnerable groups like minors and young adults.