Dutch gambling regulator Kansspelautoriteit (KSA) has fined Blue High House €1.1 million (£935,678/$1.2 million) for continuing to offer online gambling in the Netherlands without the relevant licence.
Announced on 22 November, the decision was actually made on 5 November. Panama-based Blue High House has six weeks from the date of the decision to pay the fine or face additional interest.
In its ruling, KSA said Blue High House had breached regulations in the Netherlands by offering games without a local licence. Usually, this type of breach can warrant a basic fine of €600,000 but the nature of the case led to a fine almost double this.
KSA also noted this is the second time this year it has imposed a financial penalty on Blue High House. A €129,000 fine issued in June also related to operating without approval from the regulator.
Continuous breaches from Blue High House
The case dates back to December 2021 when KSA first investigated the Blue High House-operated Betonline.ag website. Additional probes followed in January and March of 2022 and again in March and January last year.
During these investigations, KSA established that players in the Netherlands could access the website, make an account, deposit and gamble. This is despite Blue High House not holding a Dutch licence.
The regulator also noted that no technical measures had been put in place to prevent Dutch players accessing the site. It added that the ‘games of chance’ content offered on the site is not permitted at all in the Netherlands.
An initial cease-and-desist order was issued in September 2023 but Blue High House did not respond. This was followed by the first fine being sent to the operator earlier this year.
KSA said the fine amount exceeds the standard amount for this type of breach, but was warranted due to the nature of the case.
Breaking down its reasoning, KSA applied a €600,000 fine for operating without a licence but tagged on additional charges. These include €150,000 for offering illegal games of chance. A further €75,000 was noted for each of the following: unauthorised payment methods, autoplay feature, lack of playing limits, no age verification and unspecified “special circumstances”.
While Betonline.ag has now ceased operating in the Netherlands, KSA will continue to monitor the website. If it does restart, or Blue High House operates via other channels, the company could face more sanctions.
KSA chief pledges tough action against illegal operators
Commenting on the case, KSA chairman Michel Groothuizen hit out at Blue High House for its actions via Betonline.ag. He said features such as autoplay and not offering limits can encourage risky gambling behaviour.
“The Netherlands has a legal market to ensure that people who want to gamble can do so safely,” Groothuizen said. “With illegal providers we often see that risky gaming behaviour is not taken into account in any way.
“For example, players can create an account on this website without having to verify their age, which means that minors can also play. We also saw things like autoplay and turbo play, which can encourage excessive gaming, and there were no gaming limits.
“KSA takes tough action against these types of illegal websites.”
