The state-sponsored Nederlandse Loterij has mandated that the operators of the unauthorized gambling site Skyhills stop servicing players in the Netherlands. This directive follows a recent court decision regarding Lalabet.
On Tuesday, Nederlandse Loterij announced that it has dispatched cease-and-desist notices to entities and individuals associated with Skyhills across multiple jurisdictions, including Costa Rica, North Macedonia, the United Kingdom, Curaçao, Malta, and the Marshall Islands.
As a result of the order, access to the Skyhills platform is now barred for users in the Netherlands. CEO Arjan Blok highlighted the necessity of safeguarding players in a statement released this week.
"Skyhills employs misleading advertising, notably on platforms like TikTok, specifically targeting Dutch players, particularly the youth. Gamblers on these sites lack essential protections and confront inherent risks," he stated.
"This is unacceptable. It is gratifying to observe Skyhills go offline promptly following our initial intervention."
In terms of context, this is not the first time that Nederlandse Loterij has pursued legal action against an unauthorized operator. Skyhills marks the third illegal operator it has targeted, following similar actions against Lalabet and Qbet.
The court's verdict regarding Lalabet was significant, reaching a peak in June when it ruled mainly in favor of the lottery operator. It determined that Lalabet’s operators and executives had acted unlawfully by catering to Dutch players, demanding they cease their operations and disclose detailed information about ownership and shareholders. Furthermore, the court investigated the possible responsibilities of trust administrators and local representatives who enable illegal gambling sites.
Although the ruling did not hold the Curaçao-based trust firm DECC and its directors accountable, it indicated that increased examination of such intermediaries may be on the horizon. The Nederlandse Loterij intends to appeal specific aspects of the Lalabet ruling, particularly in relation to the duties of trust firms to properly vet their clients.
Moreover, the lottery operator is scrutinizing the roles of the same trust firm concerning Qbet and Skyhills, hinting at potential legal actions once the corporate frameworks are further clarified.
Concurrent with these developments, the issue of illegal gambling is under discussion in the Dutch House of Representatives, which is set to review gambling regulation reforms this week.
Nederlandse Loterij has endorsed government initiatives designed to enhance the Gambling Authority’s capacity to tackle illegal operators. However, it has also warned that thorough legislative reforms may take years to implement effectively.
Blok emphasized the urgency for immediate action, stating, "The government must act now through criminal prosecutions by the Public Prosecution Service, in combination with measures implemented by regulators and licensed operators. Tackling illegal gambling entails collaborative responsibility from banks, payment providers, and hosting services that support these platforms."
In addition, the lottery operator expressed concerns regarding recent government proposals for a blanket ban on advertisements from authorized online gambling operators. It cautioned that such measures might unintentionally steer players towards unregulated, illegal platforms.
Currently, according to Nederlandse Loterij, illegal operators hold approximately half of the Dutch online gambling market and are responsible for around 95% of online gambling advertisements, often posing as licensed entities. Roughly 200,000 Dutch citizens are believed to engage with unauthorized gambling platforms.
Earlier this summer, the Dutch Online Gaming Providers (VNLOK) began legal proceedings against Meta, filing a formal complaint with the European Commission. VNLOK accuses the social media giant of not adequately preventing the rampant display of illegal online gambling advertisements targeting Dutch users on Facebook and Instagram. They contend that the illegal online gambling market in the Netherlands is now comparable in size to the regulated sector, with annual revenues exceeding €1 billion ($1.1 billion).
