The Nederlandse Loterij, the state-backed lottery operator in the Netherlands, has taken decisive action against the unlicensed gambling platform Skyhills by ordering its operators to stop serving Dutch players. This order follows a recent court ruling regarding the gambling site Lalabet.
On Tuesday, Nederlandse Loterij revealed that it had issued a cease-and-desist notice to the companies and directors associated with Skyhills, affecting jurisdictions such as Costa Rica, North Macedonia, the United Kingdom, Curaçao, Malta, and the Marshall Islands. The operator confirmed that the Skyhills platform is no longer accessible in the Netherlands due to this directive.
Arjan Blok, CEO of Nederlandse Loterij, stressed the significance of player protection in his statement. He highlighted the deceptive advertising tactics employed by Skyhills, particularly on platforms like TikTok, which are designed to target Dutch players—especially the youth. "Skyhills uses devious advertising, explicitly targeting Dutch players, especially young people. Players there gamble without any safeguards and face all associated risks," he stated. He expressed satisfaction in seeing Skyhills taken offline following their intervention.
Skyhills marks the third illegal operator that Nederlandse Loterij has pursued; prior actions were directed at Lalabet and Qbet. The verdict in the Lalabet case, which reached a pivotal milestone in June, favored Nederlandse Loterij. The court found that Lalabet’s operators and directors acted unlawfully by targeting Dutch individuals, ordering them to cease operations and disclose ownership and shareholder details. The ruling also examined the potential liabilities of trust administrators and local representatives involved with illegal gambling sites, signaling a possibility for increased scrutiny of these intermediaries.
Although the court did not hold the Curaçao-based trust firm DECC liable in this case, Nederlandse Loterij has indicated plans to appeal parts of the Lalabet decision, particularly concerning the responsibilities of trust firms to adequately vet clients. Additionally, the lottery operator is looking into the connections of the same trust firm with Qbet and Skyhills, hinting at potential further legal actions as they clarify corporate structures.
This crackdown on illegal gambling occurs alongside broader discussions on gambling regulations in The Hague. The Dutch House of Representatives is expected to review reforms to gambling regulations this week. Nederlandse Loterij has welcomed government plans aimed at enhancing the Gambling Authority’s powers to address illegal operators, but they expressed concerns that comprehensive legislative changes could take years to implement.
Blok has urged immediate action from the government, 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 that facilitate these platforms."
The lottery operator criticized government proposals for a blanket ban on advertising by licensed online gambling providers, arguing that such restrictions might inadvertently push players toward unregulated illegal platforms. According to Nederlandse Loterij, illegal operators currently control about half of the Dutch online gambling market and account for approximately 95% of online gambling advertisements, often posing as licensed providers. They estimate that around 200,000 Dutch citizens engage with unauthorized gambling platforms.
Earlier this summer, the Dutch Online Gaming Providers (VNLOK) initiated legal action against Meta and filed a complaint with the European Commission, accusing the social media company of failing to prevent the widespread display of illegal online gambling ads targeting Dutch users on Facebook and Instagram. VNLOK stated that the size of the illegal online gambling market in the Netherlands now parallels the regulated sector, with estimated annual revenues exceeding €1 billion ($1.1 billion).
