Amsterdam Court Mandates Repayment In BetCity €496k Free Bet Fraud Case

A Dutch court has ordered a former employee of BetCity and a player to repay significant damages following a fraud case involving unauthorised free bets. The scheme caused substantial financial losses for BetEnt B.V., which is owned by Entain.

The District Court of Amsterdam delivered its ruling on 13 February, with publication following on 19 March. Judges found that the employee breached contractual obligations by issuing hundreds of free play credits without valid justification.

These credits are typically capped at €200 and reserved for customer support situations. Instead, they were distributed in bulk to selected accounts using methods that bypassed internal controls.

Unauthorised credits generate significant winnings

The court identified excessive credit allocations across four player accounts, with nearly €496,000 in free bets issued. These credits were used to place wagers that generated winnings exceeding €354,000, with total returns surpassing €401,000 as activity continued.

One of the account holders was named as a co-defendant. The court concluded that both the employee and the player acted unlawfully and held them jointly liable for part of the financial damage.

The employee was also found solely responsible for additional losses tied to other accounts involved in the scheme. Judges rejected claims that the operator should share liability due to gaps in oversight.

According to the ruling, the employee deliberately avoided fraud detection systems by using non-standard processes. Withdrawals were structured below monitoring thresholds to reduce the chance of detection.

The court described the conduct as calculated, removing any basis for attributing responsibility to the employer.

Court dismisses mitigation arguments and orders repayment

The employee argued that a gambling problem should reduce liability, but the court dismissed this claim due to lack of evidence. There was also no indication that the employer had prior knowledge of any such issue.

A separate request to lower damages based on financial hardship was also rejected. Judges maintained that the intentional nature of the misconduct outweighed such considerations.

The employee was ordered to repay multiple sums, including €82,856.50 and €60,481.04 linked to winnings from additional accounts. Both defendants were jointly liable for €73,230.11.

Further costs were awarded to cover investigative work and legal proceedings. The court also confirmed that BetEnt acted appropriately when it closed the player’s account in June 2023.

Ruling reinforces recovery of gambling-related gains

The judgement establishes a clear link between unauthorised credits and subsequent gambling profits. This connection allowed the court to extend recoverable damages to include winnings generated from the scheme.

BetEnt had previously faced regulatory scrutiny, including a €2.65m fine issued in October for responsible gaming failures. However, the court dismissed claims that the operator suffered reputational damage due to insufficient evidence.

Both defendants were ordered to cover procedural costs, and the ruling was made provisionally enforceable, allowing BetEnt to recover funds promptly.