Dutch regulator Kansspelautoriteit (KSA) has told Freebitco.in operator FBC BV it will face weekly penalty fees if it does not cease offering gambling without a local licence.
In a KSA ruling announced yesterday (17 December), FBC has illegally been operating games of chance without a Dutch licence. Games of chance are also prohibited in the Netherlands.
The Freebitco.in website claims to have over 54 million registered users globally. Its offering includes hi-lo jackpot content and lottery games and players can gamble using Bitcoin.
Detailing the case, KSA said it carried out several regulatory checks on the website, commencing in January 2023. Further checks were carried out in April, June and November of this year.
Officers found that Dutch players could access the site, create an account, deposit and gamble. KSA said offering games of chance without a licence is a “very serious” offence.
Site remains active despite pledges to block access
KSA informed FBC in July this year that it intended to impose a penalty for the breach of Dutch law. The regulator held talks with several lawyers for FBC, offering it the opportunity to cease operations before issuing a penalty.
In a response issued in August, FBC argued in favour of its free-play offering which enables users to win Bitcoin for free. It also claimed to have taken steps to block Dutch players from the site.
A second response from FBC followed, noting that Dutch players could no longer access games of chance on the site, but Freebitco.in was still active in the country for other services. However shortly after, it said “technical circumstances” had prevented it from putting the measures in place.
Another response came in September, as FBC claimed to take immediate action to rectify the regulatory issue. However, a difference in opinion with internal management led it to request an extension for implementing changes.
KSA’s most recent check of the site in November found it was still live and accessible. The regulator said the operator had been given ample time to comply with its ruling and that as it failed to do so, it would face imminent action.
FBC could face €840,000 penalty
While the case was only made public yesterday, the actual ruling came on 15 November. This saw KSA impose a penalty payment order on FBC.
From the date of the decision, FBC was give four weeks to halt operations, with this ‘benefit’ period expiring on 13 December. After this, KSA said that the operator would face a weekly penalty payment.
This is set at €280,000 (£231,672/$293,897) per week, up to a maximum of €840,000.
“The Netherlands has a regulated gambling market to better protect players,” KSA said, “KSA therefore takes tough action against illegal offers. With a penalty payment order, illegal offers are often quickly stopped. Providers can also be fined for the period in which the illegal offer was available.”
