September 22, 2022 - 11:22 am

Court rules municipalities may not always reclaim gambling revenue

The Rotterdam District Court issued four rulings in this case on 2 September 2022. These rulings held that gambling in casinos without reporting to the municipality and maintaining adequate and verifiable records of gambling activities was unlikely to result in full repayment of assistance.

Assistance payments rarely come with an administrator. Moreover, gambling is usually a loss and not profitable. This means that automatic recovery of benefits does not fit the goal of recovery. Instead, the purpose of a recovery order is to put the beneficiary in a situation he would have expected if he had fulfilled his duty to disclose.

Paying back gambling income with welfare benefits anyway

The court recently adopted a rule of thumb when determining gaming income. This rule states that a person's casino income is equal to the amount he or she wagers or withdraws while playing. This can be deviated from if the assistance recipient refuses to cooperate with an investigation by his municipality, or if he is found to have earned more from gambling than declared. In these cases, the municipality may reclaim the assistance in full.

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