The Dutch gambling regulator Kansspelautoriteit has fined five operators more than EUR26.0m (PS23.0m/$27.6m), after finding they had violated the rules by offering online gaming in the country without a license.
N1 Interactive, Videoslots BetPoint Group and Probe Investments were all penalized in December 2022. However, the fines were not made public until today (3 March), after the operators requested that the court stop making the fines public.
The court declined the request earlier in the week, so KSA can publish all details.
N1 Interactive received the largest fine, EUR12.6m. It was first penalised in July 2020 for operating in violation of a license in the country.
Videoslots was fined EUR9.9m after incorrectly showing the KSA mark on its website. This was despite not having received a license from the regulator to allow online gambling in the Netherlands. KSA stated that its branding allows players to verify if an operator has been licensed.
Betpoint Group was penalized EUR1.8m for operating in the Netherlands without a license. Probe Investments was assessed a EUR1.1m penalty and Fairload EUR900,000.
KSA stated that fines were calculated based on the turnover of each operator in accordance with its fines policy, which was adopted in September 2021.
The regulator stated that online games of chance are only permitted with a license from KSA. To ensure players have a safe legal offer and protection against gambling addiction, strict rules and regulations are in place.
Rene Jansen, chairman of KSA, said: “We mean business. Safety of the player is paramount. To hit the heart of the matter, a fine should be imposed. Given the illegal earnings, we believe we can impose a sanction with such amounts.
Response to Videoslots
Videoslots stated earlier this week that it would contest the ruling before publication. It accused the regulator of abusing mystery shopping.
Videoslots stated that the logo of the regulator was incorrectly visible on its website for a brief time before it was quickly removed.
Videoslots claimed that the KSA made the mistake and tried to register as a Dutch customer. However, the KSA was unable to do so due to the existing security measures. KSA was said to have obtained unauthorised access by pretending that it was a German customer and managed to deposit a bet of 20cs.
Videoslots was informed by the KSA that a KSA official had illegally accessed its website. The operator stated that it took further steps to stop this from happening again.
KSA stated that Videoslots had violated the Dutch Gaming Act and issued a fine. The operator denied the allegations and said it would challenge the decision.
Ulle Skottling, Videoslots deputy chief executive, stated that Videoslots doesn’t target or restrict the Netherlands. Therefore, the Dutch Gaming Act is not applicable to the services of Videoslots. “No Dutch player was able to access our site during this disputed period, and there was no violation.”
“It is absurd for the KSA to fine us after we have gained unauthorised access. It is impossible to fully protect against unauthorised access and the KSA does not have sufficient guidelines.
“There was no evidence of damage and the interests Dutch consumers were not compromised. Based on multiple guesstimates, the KSA determined that the fine was appropriate. It has no basis and there is no sense of proportionality.
Videoslots is very serious about its regulatory and legal obligations. However, we disagree with the KSA’s conclusions and actions, which we consider illegal. We expect a positive outcome in the case.
