Dutch Court Orders Kindred To Repay Online Gambling Losses

May 24, 2024
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​​​​​​​A Dutch court has ordered a Kindred Group unit to reimburse a gambler €93,000 in losses plus court costs on the grounds that online gambling was not yet legal at the time of the gambling, so any contract was null and void.
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UPDATE 9:30am: Comment from Kindred Group added

A Dutch court has ordered a Kindred Group unit to reimburse a gambler €93,000 in losses plus court costs on the grounds that online gambling was not yet legal at the time of the gambling, so any contract was null and void.

The order this week (May 22) followed a November 2023 interim judgment against Malta-based Trannel, a Kindred Group unit.

The unnamed player had a Unibet account between January 2020 and September 18, 2021, on which day the player both lost more than €93,000 and terminated their account, according to the filing.

Dutch online gambling licensing took effect on October 1, 2021, and Kindred did not have a Dutch licence until June 2022.

Kindred had argued that the previous gambling legislation dated to 1964, long before internet gambling was possible, was in effect so there was no ban on online gambling.

On May 22, the court ruled against Trannel’s appeal of the interim judgment.

“We acknowledge the decision of the Northern Netherlands District Court (Groningen) to declare the gambling agreement null and void in this specific case," a Kindred spokesperson said. "We maintain our position that our agreements are not contrary to the law and believe that there are solid grounds for an appeal. We view this ruling as a first step in the ongoing legal proceedings."

Player refund suits are becoming an issue in the Netherlands, following a flock of suits filed in Germany and Austria.

In April, another Dutch court ruled against units of Flutter and Entain, also on the grounds that the gamblers’ losses predated licensing on online gambling.

Offshore Underage Concerns

Separately, a Dutch affiliates group said its study suggests that minors can gamble without restrictions at unlicensed online gambling sites.

The group, the Keurmerk Responsible Affiliates (KVA), said its research found it possible for a minor to create an account with an unlicensed operator, deposit money and play.

The group said it found that it was possible to make deposits with a youth account from a Dutch bank, or anonymously using cryptocurrency, because the unlicensed providers did not check identification, or set up accounts using only an email or mobile phone number.

KVA, the Netherlands Online Gambling Association (NOGA) and trade group Licensed Online Gaming Providers (VNLOK), all called for the Netherlands Gambling Authority (KSA) to take action against the unlicensed operators, along with payments companies, internet service providers and platforms where ads for the illicit operators can be placed.

Licensed operators who allowed minors to gamble would face significant penalties under Dutch law.

Gaming Machine Crackdown

Finally, the KSA said it will crack down on illegal gaming machines, which need two kinds of licences.

Operators of land-based slot machines need both an operating licence from the KSA and a presence permit from the municipality in which the gaming hall is located, the regulator said on Thursday (May 23).

If the regulator finds a violation, the machines must be shut within two weeks, the KSA said

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