Swedish Court Orders Betsson to Pay Back Client’s Losses

admin — Thu, 21 Dec 2023 18:25:58 +0000

In a landmark ruling by the Swedish Patent and Market Court of Appeal, Betsson, a prominent betting company, has been mandated to refund all losses the plaintiff, a man suffering from a gambling disorder. This development has significant long-term consequences and follows similar cases in other European jurisdictions.

Betsson May Face Other Such Lawsuits

According to the court’s decision, Betsson must repay all of the plaintiff’s historical spending and additional compensation for mental distress. According to the individual, Betsson engaged in extensive and aggressive marketing tactics like frequent bonuses despite being aware of his status as a problem gambler. Since this happened before the company received its Swedish license, he had little legal recourse.

Magnus Rydeving, an expert providing legal guidance to individuals affected by addiction, noted that the court’s decision, ordering Betsson to reimburse the individual, potentially sets a precedent for similar cases from other victims. In an interview for Swedish media outlet Dagens industri, he noted that the sum for this individual trial may be just the tip of the iceberg.

“It’s hundreds of millions of krona, and that’s solely what I know about. Then, of course, there’s much more out there.”

Magnus Rydeving

Betsson might face the prospect of repaying hundreds of millions of krona to affected individuals, who can use this recent ruling to improve their chances of court victory. An influx of lawsuits could significantly hinder the company, costing it valuable resources and time. Betsson can still appeal to the Swedish Supreme Court, but the company has yet to disclose its intentions.

This Development Follows Broader Industry Trends

The silver lining for Betsson is that the case specifically targets the period spanning 2014 to 2019, preceding the regulation of the Swedish gambling market. Betsson was a grey market operator in Sweden before the industry underwent formal regulation in 2019. Any customers seeking legal action against the company after 2019 will likely face a significantly more difficult court battle.

This ruling aligns with similar legal precedents established in countries like Germany, Austria, and the Netherlands, where tens of millions of euros have already been recovered from gambling companies in almost 7,000 cases, with the argument being that companies acting against the law were not entitled to profits from such activities.

Sweden’s decision underscores the increasing legal scrutiny faced by gambling companies operating in unregulated markets, setting a precedent for accountability within the industry. However, it contributes to ongoing tensions between operators and EU regulators as some jurisdictions may become unsustainable for licensed stakeholders.

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Netherlands Court Orders Unibet and Another Online Casino to Refund Gamblers

admin — Mon, 06 Nov 2023 19:21:47 +0000

The court’s decision stems from a change in Dutch gambling laws in October 2021, legalizing online gambling, which has prompted individuals who lost substantial amounts of money before this date to pursue legal action, claiming their losses were unlawful. Unibet has expressed its intention to object to the ruling, opening the case for reexamination at a later date.

The Company Allegedly Operated without Permission

According to the court, Unibet must repay €93,000 ($99,902) to one gambler, while another company, whose identity remains undisclosed, was ordered to refund an amount of €124,000 ($133,203). These rulings were classified as default judgments, indicating that the defendants failed to respond. However, a Unibet representative noted that the company’s lack of response was due to human error and it would seek its legal rights.

Lawyer Benzi Loonstein, representing several former gamblers, including the two in these cases, noted that his clients were happy with the court’s ruling despite expecting a continued legal battle. The judges in both cases agreed with his arguments, indicating that Unibet may face a significant challenge in contesting this decision.

Simply put, if a company acts contrary to the law, it is not entitled to the money earned.

Lawyer Benzi Loonstein

The Netherlands is not alone in addressing claims regarding similar losses. Similar lawsuits, with a success rate of nearly 100%, have been conducted in Germany and Austria in recent years. Tens of millions of euros have already been recovered from gambling companies in almost 7,000 cases, with the argument being that companies acting against the law are not entitled to profits from such activities.

Unibet Faces Rising Pressures

An unsuccessful appeal by Unibet could cause significant long-term problems for the operator as more clients attempt to seek compensation in court. Given the successful track record of other such attempts in high-profile European jurisdictions, Unibet’s legal team will be hard-pressed to ensure success. This development closely follows the company’s ongoing issues in other European markets amidst increasing regulatory pressures.

September saw Kindred, the company behind Unibet, withdraw from Norway after a costly and protracted legal battle. The court claimed the operator had been operating illegally amidst the country’s intensifying efforts to regulate its gambling market. This development dealt a significant blow to Kindred’s European ambitions, and the new setbacks in the Netherlands have undermined its foothold in another high-profile jurisdiction.

The recent rise in refund claims has raised significant concerns in Malta, which is home to many casinos, including Unibet. The region revised its gambling law in June with Bill 55, which allows gambling companies to disregard foreign judgments when gamblers seek refunds, safeguarding against such demands. The European Commission is investigating this change in law, which goes against EU regulations.

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