The Dutch Supreme Court has upheld a ruling that makes holders of Curacao’s master gambling licenses liable for unpaid winnings of sub-licensees.
The case involved a Turkish player who won 620,000 Turkish lira (€16,910) at the online casino Bahsine, operated by Trigonon Group NV under a sub-license from Cyberluck Curaçao NV, which previously operated under the brand Curaçao eGaming.
The legal process began shortly after the passage of the National Ordinance for Games of Chance (LOK) on the island, aimed at abolishing the two-tiered master and sub-licensing system. This system traditionally operated with four master license holders who issued licenses to third parties, which were subject to less stringent oversight.
Cyberluck’s master license expired on October 1 as part of the island’s gambling reforms, with some of its former sub-licensees being transitioned to the new system.
The court said: “Liability of the licensees, with regard to the practice of the worldwide online gaming business (with enormous turnover under the Curaçao flag), can mean a heavy burden for them.
“To the extent that Cyberluck’s arguments must be read as meaning that this far-reaching liability would be unacceptable according to standards of reasonableness and fairness, this cannot be assumed, since the licensees themselves have let it get out of hand.”
When the casino operated by Trigonon refused to pay the winnings and closed the player’s account, the player assigned their claim to the Foundation for the Protection of Victims of Online Gambling (SBGOK).
The Foundation, led by Dutch journalist Nardy Cramm, has had success in securing compensation in bankruptcy cases against offshore casinos, including cases against 1xBet and BC.Game.
Cyberluck sued Cramm for defamation after she called the sub-licensing system “illegal” in an article published in February 2022.
Although the master licensee initially won the case against Cramm, the decision was overturned by the Supreme Court on appeal.
The Supreme Court ruled that Cyberluck, as the master license holder, is responsible for ensuring that its sub-licensees comply with the terms of the license, including proper payout of winnings.
The court rejected Cyberluck’s argument that it was not specially responsible for players at sub-licensed casinos.
As a result, both Trigonon and Cyberluck must pay the Turkish player’s winnings.
However, considering the significant financial implications and similar cases, the court decided not to enforce the decision immediately against Cyberluck.
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