The Nederlandse Loterij, state-owned and responsible for regulating gambling in the Netherlands, has instructed the operators of the illegal gambling site Skyhills to stop providing services to Dutch players. This order follows a recent court ruling in a separate case involving the gambling platform Lalabet.
On Tuesday, the Nederlandse Loterij announced it sent cease-and-desist notices to various companies and directors linked to Skyhills in jurisdictions including Costa Rica, North Macedonia, the United Kingdom, Curaçao, Malta, and the Marshall Islands. As a result of this directive, access to the Skyhills platform has been blocked for users in the Netherlands.
Arjan Blok, the CEO of Nederlandse Loterij, highlighted the need for player protection in a statement made this week. He explained that Skyhills employs misleading advertising tactics, particularly through platforms like TikTok, to target Dutch players, particularly younger audiences. “Players there gamble without any safeguards and face all associated risks,” he said. “This is unacceptable. It is encouraging to see Skyhills go offline immediately after our initial action.”
Skyhills is the third illegal gambling operator to face action from the Nederlandse Loterij, following previous legal efforts against Lalabet and Qbet. The case involving Lalabet, which was significant in June, concluded with a Dutch court ruling that the operators and directors of Lalabet had acted unlawfully by deliberately targeting Dutch players. The court ordered them to halt operations and provide detailed information about ownership and shareholders. Additionally, the case evaluated the potential liabilities of trust administrators and local representatives who've been facilitating illegal gambling activities. While the court did not hold the Curaçao-based trust firm DECC and its directors liable in this instance, it suggested that increased scrutiny of such intermediaries might follow.
The Nederlandse Loterij plans to appeal certain aspects of the Lalabet ruling, especially the argument that trust firms are responsible for thoroughly vetting their clients. The operator is also examining the roles of the same trust firm concerning Qbet and Skyhills, indicating that more legal actions could arise as they clarify corporate structures.
Simultaneously, this crackdown on illegal gambling is taking place alongside ongoing policy discussions in The Hague. The Dutch House of Representatives is expected to deliberate on reforms to gambling regulations this week. The Nederlandse Loterij has expressed support for government proposals aimed at enhancing the Gambling Authority's powers to combat illegal operators but has warned that significant legislative changes may take years to implement.
Blok urged for swift action, stating, “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 about advertising also arose, with the Nederlandse Loterij criticizing proposed government plans for a blanket ban on advertisements by licensed online gambling providers. They contend that such restrictions could inadvertently push players toward unregulated, illegal operators. According to the Nederlandse Loterij, illegal operators currently dominate about half of the Dutch online gambling market and account for roughly 95% of online gambling advertisements, often disguising themselves as licensed providers. Roughly 200,000 Dutch citizens are estimated to already participate in unauthorized platforms.
Earlier this summer, the Dutch Online Gaming Providers (VNLOK) took legal action against Meta, the parent company of Facebook and Instagram, claiming it has failed to prevent illegal online gambling advertisements that target Dutch users on its platforms. The VNLOK reported that the illegal online gambling market in the Netherlands matches the regulated sector's size, with estimated annual revenues exceeding €1 billion ($1.1 billion).
