The Netherlands Gambling Authority (KSA) has handed down a record fine of €37 million to the company EOD Code SRL for providing unlicensed online gambling services to players in the Netherlands. This enforcement action, announced on Thursday, comes after a comprehensive investigation revealed that the company operated more than a dozen gambling websites, which were accessible to Dutch users without the necessary licenses.
The KSA's investigation indicated that EOD Code SRL managed a network of gambling platforms, including well-known sites such as Instantcasino, Skyhills, Slotmonster, and Betblast, among others. These platforms permitted Dutch residents to place bets, violating national gambling regulations due to the operator's lack of a valid Dutch license.
Inspectors from the KSA confirmed that users in the Netherlands could successfully place bets on several of these unlicensed sites. This direct access breaches regulations stipulating that only licensed operators may offer gambling services to Dutch customers.
The investigation uncovered several aggravating factors associated with these websites, particularly regarding age verification processes that were either inadequate or unclear. This raises significant concerns about preventing underage gambling, a long-standing issue for the KSA. Earlier this year, Meryam Sümer of the Christian Democratic Party proposed raising the minimum legal age for online gambling from 18 to 24 to combat what she called a growing debt crisis among young individuals, highlighting the influence of gambling advertising as a contributing factor to this issue.
Sümer stated, "The key is to reduce temptations,” as she pushed for stronger regulations to protect youths from exposure to gambling that could lead to problematic behavior and debt accumulation.
Additionally, the KSA expressed alarm over the range of payment options accepted by the operator, which included cryptocurrencies and other anonymous methods. These payment types pose heightened risks for money laundering and complicate the enforcement of consumer protection standards.
Dutch gambling law empowers the KSA to impose fixed administrative fines or revenue-based fines when a company’s illegal earnings justify a heavier penalty. The significant fine of €37 million was deemed necessary based on EOD Code’s revenue derived from Dutch bettors, marking the highest fine ever imposed by the KSA for unauthorized gambling activities.
Despite this action, challenges persist in tackling illegal gambling. A recent study found that generative AI tools often direct users to online gambling sites that lack official Dutch licenses. All ten platforms assessed, including ChatGPT and Claude, mentioned at least one non-licensed operator, sometimes in response to simple queries. Four of these tools generated names of unlicensed sites after just one question, raising further concerns about the accessibility of illegal gambling to users in the Netherlands.
