Dutch Lottery Files Lawsuit Against Lalabet Over Unfair Competition

The Dutch Lottery, Nederlandse Loterij, is suing the Costa Rica-based gambling firm Lalabet for operating in the Netherlands illegally. The state-owned lottery is calling for Lalabet’s closure and restitution for lost revenue. It alleges significant financial damage caused by the unfair competitive environment fueled by the provider and other unlicensed gambling firms in the Netherlands.

Dutch Lottery CEO Arjan Block explained that the lawsuit was not motivated by financial compensation but rather the need to protect Dutch players by curbing illegal gambling activities compromising the regulated industry.

Not a First-Time Violator

This is not the first time Lalabet has been in the limelight as a Dutch Lottery target and is claimed to be one of the largest unlicensed gambling companies in the Netherlands. In 2023, the Netherlands Gambling Authority (KSA) penalized Casbit Group, the firm’s parent company, for breaking gambling laws.

Despite this legal action, Lalabet jumped ship to another gambling group once Casbit went under and continues to target Dutch players. For this reason, Dutch Lottery is seeking strict legal measures that force the company out of the Netherlands for good.

Gambling-Related Risks

The Dutch Lottery underscores the necessity of this lawsuit, explaining that it is a step towards restricting illegal gambling operators that fail to uphold player protection policies. Without proper safeguards in place, these platforms become easily accessible to at-risk individuals, particularly young adults, leading to gambling addiction.

Blok also argues that since illegal operators do not adhere to these regulations, it creates an unlevel playing field where legal companies lag. With no strict advertising and depositing rules to impose, the firms charm players with unrestricted bonuses and appeal to at-risk gamblers. Blok stresses that stronger enforcement of current regulations like IP blocking and penalties is necessary.

Part of a Larger Fight

The Lalabet lawsuit is one of several measures to combat illegal gambling in the Netherlands. One notable proposal is raising the minimum legal gambling age to 21, tabled by State Secretary for Legal Protection Teun Struycken. Other industry stakeholders are also calling for amendments to the regulatory loopholes that unlicensed sites exploit to thrive in the Dutch gaming market.