The Nederlandse Loterij, a state-backed lottery operator, has mandated the operators of the unauthorized gambling platform Skyhills to cease operations for Dutch players. This decision follows a recent favorable court ruling related to the illegal gambling site Lalabet.
On Tuesday, the Nederlandse Loterij confirmed that it had issued a cease-and-desist order to companies and directors associated with Skyhills in several jurisdictions, including Costa Rica, North Macedonia, the United Kingdom, Curaçao, Malta, and the Marshall Islands. In response to this directive, the Skyhills platform is no longer accessible from within the Netherlands.
Arjan Blok, the CEO of Nederlandse Loterij, highlighted the significance of safeguarding players in his statement. He stated, "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."
This action against Skyhills marks the third illegal operator confronted by the Nederlandse Loterij, following previous legal actions against Lalabet and Qbet. The ruling on the Lalabet case in June was a pivotal moment, with the court determining that Lalabet’s operators and directors had unlawfully targeted Dutch players, ordering them to terminate their activities and provide thorough ownership and shareholder details.
The court's decision also considered potential liabilities for trust administrators and local representatives involved in facilitating illegal gambling. Although the court did not find the Curaçao-based trust firm DECC and its directors liable in this instance, the case suggested that increased scrutiny of such entities could be on the horizon.
The Nederlandse Loterij has indicated its intention to appeal aspects of the Lalabet ruling, arguing that trust firms should be responsible for properly vetting their clients. The organization is also examining the roles of the same trust firm concerning Qbet and Skyhills, implying that additional legal actions may follow once corporate structures are clarified.
The crackdown on illegal gambling platforms coincides with a wider policy discussion in The Hague, as the Dutch House of Representatives prepares to consider gambling regulation reforms. The Nederlandse Loterij has expressed its support for government initiatives aimed at broadening the Gambling Authority's powers to tackle illegal operators. However, it has warned that comprehensive legislative changes could take years to implement.
Blok urged for immediate action by stating: "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 that facilitate these platforms."
Additionally, the lottery operator criticized recent government proposals to enforce a blanket ban on advertising by licensed online gambling providers. It argued that such measures could unintentionally drive more players towards unregulated and illegal platforms, noting that illegal operators presently capture about half of the Dutch online gambling market and account for around 95% of online gambling advertisements, often posing as licensed providers.
The Nederlandse Loterij estimated that approximately 200,000 Dutch citizens currently engage with unauthorized gambling platforms. Earlier in the summer, the Dutch Online Gaming Providers (VNLOK) trade body initiated legal proceedings against Meta and lodged a formal complaint with the European Commission. This action was prompted by accusations that the social media giant had failed to prevent the rampant display of illegal online gambling advertisements targeting Dutch users on Facebook and Instagram.
According to VNLOK, the illegal online gambling sector in the Netherlands is now on par with the regulated market, boasting annual revenues exceeding €1 billion ($1.1 billion).
