Lottery Enterprise in the Netherlands Initiates Legal Action Against Lalabet to Halt Their Activities
In the heart of Europe, the issue of illegal gambling operators continues to be a significant concern for regulatory bodies and legitimate businesses alike. One such operator, Lalabet, based in Costa Rica, has been under scrutiny for its alleged unlicensed online gambling operations in the Netherlands.
The Dutch Lottery, represented by its CEO, Arjan Blok, has recently filed a lawsuit against Lalabet. The suit alleges that the Costa Rica-based company, which operates the gambling website Stake.com, is engaging in unfair competition by offering its services without a license, thereby bypassing the strict regulations set by the Dutch government to protect consumers and reduce losses to gambling.
The Netherlands legalized online gambling in 2021, introducing a robust regulatory framework designed to ensure consumer protection. Under this framework, spending limits are set, and players who wish to wager more must prove their financial capacity. However, the lawsuit alleges that Lalabet permits Dutch consumers to gamble without limits, a practice that is not only against the law but also potentially harmful to consumers.
The Dutch Gambling Regulator, KSA, has been actively monitoring the effectiveness of player protection rules and methods. Despite a monetary sanction imposed by the KSA against Lalabet in 2024, the company's website remains online. Blok, the CEO of the Dutch Lottery, has vowed to fight illegal gambling operators, starting with Lalabet and continuing with others.
The lawsuit also highlights the issue of dangerous search terms such as "gambling without limits" being present in Dutch search results. This, coupled with the lack of regulation, poses a significant threat to consumers and the legal gambling sector in the country.
The impact of illegal gambling on the legal sector is substantial. The Dutch Lottery alleges that it lost between €15 million and €20 million for 2023 and 2024 to Lalabet alone. This loss is reflected in a notable decrease of 10% in the channelization rate to legal providers since the implementation of gambling limits.
In an effort to combat this issue, the Dutch Lottery has reached out to tech giants such as Meta and Google to prevent ads of illegal gambling operators from appearing to Dutch customers. Blok emphasised the need for enhanced regulatory authority for the KSA, allowing them to block access to gambling operators without a license offering services to Dutch customers.
As the battle against illegal gambling continues, the Dutch Lottery and the KSA remain committed to protecting consumers and ensuring a fair and safe environment for all. The outcome of this lawsuit against Lalabet could set a precedent for future cases, potentially marking a turning point in the fight against illegal gambling in the Netherlands.
