Dutch Lottery Sues Lalabet to Halt Unlicensed Operations

Are unlicensed gambling operators undermining the integrity of the Netherlands’ regulated gaming industry? The Dutch Lottery (Nederlandse Loterij) has initiated a civil lawsuit against Costa Rica-based Lalabet, demanding an immediate cessation of its operations within the country. This bold move aims to protect consumers and ensure fair competition in the Dutch gambling market.​

Dutch Lottery Takes Legal Action Against Lalabet to Combat Unlicensed Gambling​

Key Points:

• Legal Action Initiated: The Dutch Lottery has filed a lawsuit against Lalabet for operating without a Dutch license.​
• Financial Compensation Sought: The state-owned lottery seeks compensation for revenue losses attributed to Lalabet’s unlicensed activities.
• Consumer Protection Emphasized: The lawsuit underscores the importance of safeguarding Dutch players from unregulated gambling platforms.​

The Dutch Lottery (Nederlandse Loterij), the Netherlands’ state-owned lottery operator, has filed a civil lawsuit against Lalabet, an online gambling company based in Costa Rica. The lawsuit demands that Lalabet immediately cease its operations in the Netherlands and seeks financial compensation for revenue losses resulting from Lalabet’s unlicensed activities.

Background on Lalabet’s Operations

Lalabet has been offering online gambling services to Dutch residents without obtaining the necessary licenses from the Netherlands Gambling Authority (Kansspelautoriteit, KSA). This lack of regulation raises concerns about consumer protection, as unlicensed operators are not obligated to adhere to the stringent safeguards mandated for licensed entities.

Arjan Blok, CEO of the Dutch Lottery, estimates that the organization lost between €15 million and €20 million in revenue during 2023 and 2024 due to competition from unlicensed operators like Lalabet. While financial restitution is a component of the lawsuit, Blok emphasizes that the primary objective is to protect Dutch consumers from the risks associated with unregulated gambling platforms. ​

Government Initiatives to Strengthen Regulations

In response to the challenges posed by unlicensed operators, the Dutch government is considering stricter regulations to enhance consumer protection. Proposed measures include raising the minimum age for high-risk gambling games to 21 and implementing a universal deposit limit across all legal providers. These initiatives aim to create a safer gambling environment and reduce the appeal of unlicensed platforms.

Blok advocates for increased enforcement powers for the KSA, including the ability to implement IP blocking to prevent access to unlicensed gambling websites. Additionally, he has engaged in discussions with major technology companies like Google and Meta to limit the online visibility of illegal gambling sites. These efforts aim to reduce the accessibility of unregulated platforms and protect vulnerable consumers.

Lalabet’s Regulatory Challenges

Lalabet’s operations have previously attracted regulatory scrutiny. The platform was initially operated by the now-bankrupt Casbit Group, based in Curaçao. In April 2023, the KSA imposed penalties on Casbit for offering unlicensed online gambling services through the Lalabet website. Despite initial attempts to restrict Dutch players’ access, subsequent inspections revealed continued accessibility, resulting in fines of €280,000 per week, up to a maximum of €840,000. Following Casbit’s bankruptcy in late 2024, Lalabet’s operations were reportedly transferred to SkyGrow Group in Costa Rica, allowing the platform to continue its unlicensed activities.

The Dutch Lottery’s legal action against Lalabet underscores the ongoing battle between regulated and unregulated gambling operators in the Netherlands. By pursuing this lawsuit, the Dutch Lottery aims to protect consumers, ensure fair competition, and uphold the integrity of the country’s regulated gaming industry. As the government considers stricter regulations and enhanced enforcement powers, the outcome of this case could set a precedent for future actions against unlicensed gambling providers operating within the Netherlands.