The Netherlands Gambling Authority (KSA) has imposed a record fine of €37 million on EOD Code SRL, marking the largest penalty ever levied by the authority. This action targets the operator for running unlicensed online gambling services that cater to players in the Netherlands.
This enforcement action comes on the heels of a thorough investigation that uncovered EOD Code SRL’s unauthorized operation of numerous gambling platforms, including well-known sites such as Instantcasino, Skyhills, Slotmonster, Betiro, Betblast, Fastslots, Goldenpanda, Sambaslots, Winningz, Incognitocasino, Foxygold, and Luckypays.
The KSA’s findings revealed that these websites allowed users in the Netherlands to place bets, even though the operator did not possess a valid Dutch license, thus infringing upon national gambling regulations.
Inspectors confirmed that it was possible for bets to be placed from within the Netherlands on several of these sites, violating rules that mandate licensed operators to restrict access from Dutch players to illegal gambling options.
In addition, the authority cited several aggravating factors associated with these websites, particularly highlighting poor or ambiguous age verification procedures. These shortcomings compromise safeguards designed to prevent underage gambling.
The issue of youth gambling has come under increasing scrutiny. Earlier this year, Meryam Sümer, a politician from the Christian Democratic Party, called for raising the minimum legal age for online gambling from 18 to 24 amid concerns over a growing debt crisis among younger citizens in the country. In Enschede, one in five young individuals is reportedly in debt, a situation that Sümer attributes to exposure to gambling advertisements.
Sümer stated, “The key is to reduce temptations,” urging for stricter regulations to protect youth from gambling-related issues.
Moreover, EOD Code SRL accepted a range of payment methods, including cryptocurrencies and other anonymous options. The KSA warned that these payment channels heighten money laundering concerns and complicate efforts to enforce consumer protection standards.
Under Dutch law, the KSA can impose fixed fines or revenue-based penalties depending on the illegal revenue generated by the operator. In this case, the authority determined that EOD Code SRL derived substantial income from Dutch bettors, justifying the significant fine based on revenue.
The €37 million penalty is unprecedented for unauthorized gambling operations in the Netherlands. However, the struggle against illegal gambling persists, as a recent Dutch study discovered that popular generative AI tools often lead users to online gambling sites that do not hold official Dutch licenses.
The research showed that all ten tools, including ChatGPT, Claude, and Meta AI, mentioned at least one unlicensed operator by name or domain in various conversations. Eight of these tools provided names of unauthorized operators in response to neutral or leading questions without indicating a research purpose. Notably, four tools, like Mistral Le Chat and Google AI Mode, revealed unlicensed site names after just one inquiry.
