The Netherlands Gambling Authority (KSA) has imposed a record fine of €37 million on EOD Code SRL for operating unlicensed online gambling platforms aimed at Dutch players. This penalty marks the largest ever issued by the KSA and comes after a thorough investigation uncovered the company's illegal activities that permitted access to gambling websites for users in the Netherlands.
The KSA's findings indicated that EOD Code SRL managed more than a dozen websites, including Instantcasino, Skyhills, Slotmonster, Betiro, Betblast, Fastslots, Goldenpanda, Sambaslots, Winningz, Incognitocasino, Foxygold, and Luckypays. These sites facilitated betting for Dutch residents without possessing a valid Dutch license, clearly infringing upon national gambling regulations.
KSA inspectors verified that it was possible for bets to be successfully placed from within the Netherlands on several of these platforms. This unrestricted access conflicts with regulations that require licensed operators to prevent Dutch users from engaging with unlicensed gambling services.
The investigation also highlighted significant shortcomings related to age verification on these websites. Many of them had insufficient or ambiguous procedures, raising alarms about their ability to prevent underage gambling. This issue has been a persistent concern in the Netherlands, with political figures like Meryam Sümer from the Christian Democratic Party advocating for an increase in the legal gambling age from 18 to 24 earlier this year. Sümer pointed out that one in five young people in Enschede are currently in debt, attributing this cycle of debt partially to the temptations presented by gambling advertising. She stated, "The key is to reduce temptations," pushing for stricter regulations to protect young individuals from potentially harmful exposure to gambling activities.
In addition, the company accepted various payment methods, including cryptocurrencies and other anonymous options, which the KSA warned could heighten risks of money laundering and complicate compliance with consumer protection standards.
Under Dutch gambling law, the KSA holds the authority to impose either fixed administrative fines or opt for revenue-based fines when an operator's illegal income warrants a steeper penalty. In this case, the KSA calculated that EOD Code’s income from Dutch players was significant enough to justify the harsh €37 million fine, the highest yet for unauthorized gambling in the country.
Despite this enforcement action, issues surrounding illegal gambling persist. A recent Dutch study revealed that several leading AI chat and search assistants frequently recommend unlicensed online gambling sites. The research indicated that ten commonly used tools, including ChatGPT, Claude, and Meta AI, mentioned at least one unlicensed operator, either by name or domain, in their interactions. Four of these tools quickly generated names of non-licensed sites after receiving just one prompt, raising further concerns regarding the accessibility of illegal gambling.
This ongoing challenge underscores the KSA's battle against illegal gambling, which remains an area of significant concern for the regulator as they strive to enhance compliance and consumer safety within the industry.
