The Netherlands Gambling Authority (KSA) has handed down a record fine of €37 million to EOD Code SRL for running unlicensed online gambling services aimed at Dutch players. This action is the largest penalty ever imposed by the KSA and comes after an in-depth investigation into the company's operations.
Authorities uncovered that EOD Code SRL was behind a network of more than a dozen gambling websites, including well-known platforms like Instantcasino, Skyhills, Slotmonster, Betiro, Betblast, Fastslots, Goldenpanda, Sambaslots, Winningz, Incognitocasino, Foxygold, and Luckypays. Despite the presence of these sites, EOD Code SRL did not hold a valid license to operate in the Netherlands, breaching national gambling regulations.
KSA inspectors confirmed that bets could be placed from within the Netherlands on many of these sites, which directly contradicts laws stipulating that only licensed operators may offer gambling services to Dutch users.
The investigation also raised red flags regarding inadequate age verification measures across these websites, which are crucial for preventing underage gambling. Underage gambling has become a significant issue for the KSA; Meryam Sümer, a politician from the Christian Democratic Party, recently called for an increase in the legal age for online gambling from 18 to 24, citing a rising debt crisis among young people in Enschede. With one in five young individuals reportedly in debt, Sümer emphasized the need for stricter regulations to limit exposure to gambling advertisements that can lead to problematic gambling and financial distress.
Additionally, the operator permitted various payment methods, including cryptocurrencies, which could heighten the risk of money laundering and complicate the enforcement of consumer protection measures.
According to Dutch gambling law, the KSA is empowered to impose fixed fines or opt for penalties based on the operator's revenue when illegal earnings warrant a heavier sanction. In this case, the regulator determined that EOD Code SRL gained substantial income from Dutch gamblers, prompting the hefty fine as a revenue-based penalty.
This €37 million fine represents the KSA's largest response to unauthorized gambling activities to date. Nevertheless, the ongoing battle against illegal gambling remains a pressing issue for the KSA, especially in light of a recent study indicating that popular generative AI chat and search tools often lead users to unlicensed gambling sites. The study revealed that all ten tools examined, including ChatGPT, Claude, and Meta AI, mentioned at least one non-licensed operator in conversations, with some responding with names or domains without specific prompts, illustrating a need for further scrutiny in controlling illegal gambling.
