Ruling in court case about gambling operator's bankruptcy

07, Mar 2024

On 5 March 2024, the Danish Maritime and Commercial Court ruled in a case that a player had brought against the gambling operator DK Gambling, which went bankrupt in April 2022. 
The bankruptcy estate was acquitted, and the player's claim for payment of the balance on his gaming account was rejected.

The case took its beginning when several players had been denied a so-called separatist claim, which means that they would be paid the exact amount that was in their gaming accounts at the time of the bankruptcy.

On 13 September 2023, the Danish Gambling Authority chose to enter the trial as an intervenor in support of the player. The Danish Maritime and Commercial Court acquitted the bankruptcy estate on 5 March 2024 and thus rejected the player's separatist claim.

Since the Danish Gambling Authority is only a secondary intervenor and is thus not a party to the case, the Danish Gambling Authority is waiting to see if the player chooses to appeal.

If the case is appealed, the Danish Gambling Authority will decide whether they should intervene in the appeal. If the judgment is not appealed and thus remains in force, it means that the trustee in bankruptcy in DK Gambling must be expected to reject all the players' separatist claims and only recognize these as simple claims in the estate.

In addition, the judgment means - if it stands - that the model described in the gambling legislation generally does not secure players' money in the way it is intended.

If the judgment is not appealed, the Danish Gambling Authority will carry out a closer analysis of the scope and consequences of the ruling, and initiate measures to investigate what can be done in relation to the way the gambling operators must handle the players' deposits.