The Netherlands Gambling Authority (KSA) has imposed a record fine of €37 million on EOD Code SRL due to its operation of unlicensed online gambling sites catering to players in the Netherlands. This decision marks the largest penalty issued by the KSA to date.
The enforcement action, announced on Thursday, follows a detailed investigation that uncovered the company's unauthorized gambling platforms available to Dutch users. EOD Code SRL operates a network of more than ten gambling websites, including Instantcasino, Skyhills, Slotmonster, Betiro, Betblast, Fastslots, Goldenpanda, Sambaslots, Winningz, Incognitocasino, Foxygold, and Luckypays.
These websites enabled Dutch residents to place bets while the operator lacked the necessary Dutch license, violating local gambling laws. KSA inspectors confirmed that bets could be placed from within the Netherlands on several of these sites, directly contravening regulations mandating that licensed operators block access for Dutch users to unlicensed gambling services.
The investigation highlighted troubling issues with age verification on these sites. Many of them failed to implement clear age verification procedures, raising alarms about the potential for underage gambling. Underage gambling has become a significant issue for the KSA, prompting politician Meryam Sümer from the Christian Democratic Party to call for raising the minimum legal age for online gambling from 18 to 24 earlier this year. With reports indicating that one in five young individuals in Enschede are in debt, Sümer has attributed this to the lure presented by gambling advertisements. "The key is to reduce temptations," she asserted, emphasizing the need for stricter regulations to protect youth from exposure that may lead to gambling problems or financial issues.
Additionally, EOD Code SRL accepted a variety of payment methods, including cryptocurrencies, which the KSA warned could heighten the risks of money laundering and hinder the enforcement of consumer protection measures.
According to Dutch gambling law, the KSA can choose to impose a fixed administrative fine or a revenue-based penalty if the operator’s illicit profits warrant a larger sanction. In this case, the KSA determined that EOD Code's significant income from Dutch bettors justified the revenue-based fine, resulting in the €37 million penalty.
Despite the record fine, the KSA's efforts in combating illegal gambling face ongoing challenges. A recent Dutch study revealed that popular generative AI chat and search assistants were often directing users to online gambling sites without official Dutch licenses. The study found that all ten AI tools investigated, including ChatGPT, Claude, and Meta AI, mentioned at least one non-licensed operator in conversations, with some tools identifying such operators without any specific prompts for research. Furthermore, four of the tools generated names of unlicensed sites following just one inquiry.
The KSA continues to grapple with the complexities of enforcing gambling regulations in an evolving technological landscape.
