The Nederlandse Loterij, a state-backed lottery operator, has taken decisive action to shut down the unauthorized gambling platform Skyhills, preventing it from serving Dutch players. This response follows a recent court ruling in a separate case involving Lalabet.
On Tuesday, the Nederlandse Loterij issued a cease-and-desist order to the individuals and companies linked to Skyhills across various jurisdictions, including Costa Rica, North Macedonia, the United Kingdom, Curaçao, Malta, and the Marshall Islands. Following this directive, the Skyhills platform confirmed its inaccessibility in the Netherlands.
CEO Arjan Blok articulated the operator’s commitment to player protection, stating, "Skyhills uses devious advertising, including on TikTok, explicitly targeting Dutch players, especially young people. Players there gamble without any safeguards and face all associated risks. This is unacceptable. It is encouraging to see Skyhills go offline immediately after our initial action."
Skyhills marks the third illegal operator that the Nederlandse Loterij has targeted, with previous actions taken against Lalabet and Qbet. The Lalabet case, which reached a significant ruling in June, determined that Lalabet's operators and directors had unlawfully targeted Dutch players, mandating them to cease their activities and disclose detailed ownership and shareholder information. The court’s findings also touched on the potential liabilities of trust administrators and local representatives tied to illegal gambling operations.
Although the court did not hold the Curaçao-based trust firm DECC and its directors accountable in this instance, it indicated that scrutiny on such intermediaries could intensify. The Nederlandse Loterij has announced plans to appeal aspects of the Lalabet decision, contending that trust firms have a responsibility to properly vet their clients.
Investigations continue into the trust firm’s involvement concerning both Qbet and Skyhills, indicating that further legal action might be on the horizon once corporate structures are clarified.
The crackdown on illegal gambling platforms coincides with ongoing discussions regarding gambling regulation reforms in The Hague. This week, the Dutch House of Representatives is scheduled to discuss proposed changes, which the Nederlandse Loterij has welcomed, particularly those aimed at expanding the Gambling Authority’s enforcement powers against illegal operators. However, they caution that significant legislative reforms could take years to implement.
Blok stressed the need for immediate action, asserting, "The government must act now through criminal prosecutions by the Public Prosecution Service, alongside measures taken by regulators and licensed operators. Tackling illegal gambling requires joint responsibility from banks, payment providers, and hosting services who facilitate these platforms."
The Nederlandse Loterij has also raised concerns regarding proposals for a complete advertising ban on licensed online gambling entities, arguing such measures could unintentionally push players towards unregulated platforms. They assert that illegal operators currently hold nearly half of the Dutch online gambling market and account for approximately 95% of online gambling advertisements, often posing as licensed providers. The Loterij estimates around 200,000 Dutch citizens are already engaging with unauthorized platforms.
Earlier this summer, the Dutch Online Gaming Providers trade body (VNLOK) initiated legal proceedings against Meta, filing a formal complaint with the European Commission. VNLOK accuses the social media giant of failing to curb the widespread display of illegal online gambling ads targeting Dutch users on Facebook and Instagram. They claim the size of the illegal online gambling market in the Netherlands now rivals that of the regulated sector, with annual revenues exceeding €1 billion ($1.1 billion).
