The Nederlandse Loterij, backed by the Dutch state, has mandated that the operators of the illegal gambling site Skyhills discontinue their services to players in the Netherlands.
This directive follows a recent ruling concerning the gambling site Lalabet.
On Tuesday, the Nederlandse Loterij announced that it had issued a cease-and-desist order to entities and directors connected to Skyhills across various jurisdictions, including Costa Rica, North Macedonia, the United Kingdom, Curaçao, Malta, and the Marshall Islands. After notification, the Skyhills platform became inaccessible to users in the Netherlands.
Arjan Blok, CEO of Nederlandse Loterij, highlighted the importance of protecting players, stating, "Skyhills uses devious advertising, including on TikTok, explicitly targeting Dutch players, especially young people. Players there gamble without any safeguards and face all associated risks. This is unacceptable. It is encouraging to see Skyhills go offline immediately after our initial action."
Skyhills marks the third illegal operator to be addressed by the Nederlandse Loterij, following previous actions against Lalabet and Qbet. The landmark ruling involving Lalabet, delivered in June, confirmed the unlawful practices of its operators and directors who targeted Dutch players in violation of regulations. The court ordered an end to Lalabet’s activities and demanded comprehensive ownership and shareholder information.
The ruling also evaluated accountability for trust administrators and local representatives who support illegal gambling operations. While it did not find the Curaçao-based trust firm DECC and its directors liable, the decision implied a potential for increased scrutiny of such intermediaries.
The Nederlandse Loterij intends to appeal parts of the Lalabet verdict, arguing that trust firms are responsible for thoroughly vetting their clients. The operator is also looking into the roles of the same trust firm concerning Qbet and Skyhills, suggesting the likelihood of further legal actions once corporate structures are clarified.
This crackdown on illegal gambling coincides with ongoing policy discussions in The Hague. This week, the Dutch House of Representatives plans to consider reforms related to gambling regulations. The Nederlandse Loterij supports government initiatives to enhance the Gambling Authority's capabilities to fight illegal operations but warns that significant legislative changes may take years to implement.
Blok urged for immediate, decisive measures, asserting, "The government must act now through criminal prosecutions by the Public Prosecution Service, alongside measures taken by regulators and licensed operators. Tackling illegal gambling requires joint responsibility from banks, payment providers, and hosting services who facilitate these platforms."
Concerns regarding advertising practices were also raised by the lottery operator, which criticized proposed government measures for a blanket ban on advertisements from licensed online gambling providers. They argued that such restrictions could unintentionally push more players towards unregulated, illegal options, as illegal operators reportedly command about half of the Dutch online gambling market and are responsible for around 95% of online gambling ads, often disguised as licensed entities.
It is estimated that approximately 200,000 Dutch citizens are currently involved with unauthorized platforms.
Earlier in the summer, the Dutch Online Gaming Providers (VNLOK) took legal action against Meta and filed a formal complaint with the European Commission. They claimed that the social media company has not sufficiently prevented the widespread display of illegal online gambling advertisements targeted at Dutch users on its platforms, Facebook and Instagram. VNLOK has stated that the illegal online gambling market in the Netherlands now rivals the regulated sector, with annual revenues exceeding €1 billion ($1.1 billion).
