Dutch Lottery sues Lalabet as it seeks millions over illegal gambling in Netherlands

The Dutch Lottery is reportedly taking legal action to stop the operations of the Costa Rica-based company Lalabet in the Netherlands.

According to the local news outlet Het Financieele Dagblad, the state-owned body is also seeking compensation for lost profits, asserting that Lalabet is one of the largest illegal gambling providers in the country.

The organization claims to have lost between €15 million ($16 million) and €20 million ($22 million) in profit in 2023 and 2024 due to unfair competition from illegal online gambling operators.

According to Dutch Lottery CEO Arjan Blok, the civil lawsuit against the Costa Rica-based company and its executives is not about money. The claim could be a final attempt to curb the activities of illegal gambling companies.

Bettors switch to more risky platforms

Since the legalization of online gambling in 2021, licensed operators must comply with various rules to prevent gambling addiction. This includes strict advertising regulations and deposit limits.

If players want to exceed such limits, they must provide justification. The problem, however, is that they can then easily switch to an illegal provider that disregards these regulations. This happens much more often than previously thought, according to recent findings by the Dutch Gambling Authority (KSA).

The KSA based its conclusions on a research method co-developed by the Dutch Lottery, which owns brands such as Staatsloterij, Lucky Day, and Toto. Researchers analyzed Google search volume for both legal and illegal gambling sites. They reported approximately €300 million ($325 million) flowed to illegal gambling operators in the last quarter of the previous year.

Dutch Lottery claims gamblers are unprotected from operators like Lalabet

Cited by the newspaper (translated to English), Blok said: “Gamblers are unprotected with these illegal operators. They can lose far more than they can afford, play for extended periods, and are not required to verify their identity.

“Moreover, these operators specifically target vulnerable groups: young adults, who are susceptible to discount promotions, VIP arrangements, and incentives like a free Rolex watch.”

Meanwhile, legal operators are facing stricter regulations. On Wednesday (Mar. 26), a parliamentary roundtable discussion will take place regarding plans by NSC State Secretary Teun Struycken for Legal Protection to tighten online gambling policies. His proposals include raising the minimum age to 21 for high-risk gambling and implementing a universal deposit limit across all operators.

De Kansspelautoriteit (Ksa) legt Casbit Group N.V. een last onder dwangsom op voor het aanbieden van illegale kansspelen op de website lala .bet.https://t.co/VMckGKP67R

— Kansspelautoriteit (@Ksa_Nederland) April 11, 2024

Last year, the KSA imposed a penalty order on Lalabet’s parent company, Casbit Group.

Following this, the company ceased payouts to several gamblers and was subsequently declared bankrupt.

However, according to Blok, Lalabet’s website has remained operational. “It is now being run by SkyGrow Group Limitada from Costa Rica. We have also summoned them and their executives to court.”

Featured image: Canva / Arjan Blok

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