Dutch Lottery Sues Lalabet Over Unlicensed Operations in the Netherlands
The Dutch Lottery has launched a legal battle against Costa Rica-based Lalabet, accusing the operator of running unlicensed gambling services in the Netherlands. The state-owned company seeks both financial compensation and an immediate halt to Lalabet’s activities, citing unfair competition and consumer protection risks.
State-Owned Operator Seeks to Combat Illegal Gambling
The Dutch Lottery (Nederlandse Loterij) has taken legal action against Lalabet, a Costa Rica-based online gambling operator, demanding that it cease operations in the Netherlands immediately. The lawsuit, filed as a civil case, also seeks compensation for revenue losses attributed to Lalabet’s unlicensed activities.
Dutch Lottery CEO Arjan Blok emphasized that the primary goal is not financial restitution but rather a firm response to illegal gambling operations that undermine the country’s regulated market.
“This is about protecting the integrity of the industry and ensuring that players are not exposed to unlicensed platforms that operate outside of regulatory oversight,” Blok stated.
Financial and Consumer Protection Concerns
The Dutch online gambling market has been regulated since 2021, with licensed operators required to comply with strict rules, including advertising restrictions and deposit limits aimed at preventing gambling addiction. However, unlicensed platforms continue to attract Dutch players, raising concerns over consumer protection and responsible gaming.
Blok estimated that the Dutch Lottery lost between €15 million and €20 million in revenue between 2023 and 2024 due to competition from unlicensed providers. He also warned that these platforms put vulnerable players—particularly young adults—at greater risk by failing to implement protective measures.
Dutch Authorities Consider Stricter Gambling Rules
The lawsuit comes at a time when the Dutch government is considering tighter gambling regulations. Minister for Legal Protection Teun Struycken has proposed increasing the minimum gambling age to 21 for high-risk games and implementing a universal deposit limit across all licensed operators.
While Blok supports these initiatives, he stresses that authorities must also strengthen enforcement against illegal gambling providers. He has called for increased regulatory powers for the Netherlands Gambling Authority (KSA), including the ability to block IP addresses of unlicensed platforms. In addition, discussions with major tech companies such as Google and Meta are underway to reduce the online visibility of illegal gambling sites.
Lalabet’s Troubled History
Lalabet’s past regulatory issues further underscore concerns about its operations. Previously run by Curaçao-based Casbit Group, the platform came under scrutiny in April 2023 when the KSA imposed penalties for offering gambling services without a Dutch license. Casbit initially attempted to restrict Dutch players’ access, but a later inspection revealed that the site remained accessible. This led to a weekly fine of €280,000, with a cap of €840,000.
At the end of 2024, Casbit Group declared bankruptcy in Curaçao following legal disputes over unpaid player claims totaling €619,500. Reports indicate that Lalabet’s operations were then transferred to SkyGrow Group in Costa Rica, allowing it to continue offering services without a local license.
The Dutch Lottery’s case against Lalabet may be the first in a broader crackdown on unlicensed gambling providers. Blok has indicated that the operator is prepared to take further legal steps against other companies that operate without regulatory approval in the Netherlands.