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Gambling is regulated. There are laws that companies have to follow before they can sell gambling in the Netherlands.
Cases are banned for other reasons.
- Bad age checks in steam
- It's a gambling game in which you can only win virtual items (allthough you can sell on 3rd party sites, the system was never designed for that. It was designed to keep the money within your steam account)
- The case openings is a gambling game in a way that it lures you in.
The combination of these things above, made case opening, as it is, forbidden in the Netherlands. And Valve geo-locked it.
Circumventing geo-locks with vpns can result in account termination. (stated in the steam subscriber agreement).