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The Netherlands: fines for online operator and directors

By Richard van Schaik and Róbin de Wit

Today, the Dutch Games of Chance Authority (“KSA”) published its decision to impose a fine of EUR 170,000 on a gambling company for offering unlicensed online gambling aimed at the Dutch public. Moreover, the company’s directors were also in person faced with a fine amounting to EUR 50,000 each.

Reason for the KSA to impose fines is that games – such as blackjack and roulette – were offered through a website using e.g. the Dutch flag and ‘the Netherlands’ as country option in the dropdown menu in the players account. Furthermore, the website was mainly set up in Dutch language. Using Dutch language is part of KSA’s prioritization criteria, meaning that enforcement by the KSA is initially focused on companies who, amongst others, offer gambling websites in Dutch language.

As the company had ignored the Dutch prohibition on offering online gambling as well as KSA’s warnings upfront, the KSA held that the company wilfully took the risk that sanctions would be imposed. Furthermore, the KSA took the opinion that the violations of Dutch gambling legislation could be attributed to the directors involved in person as they failed to take measures to prevent the violations, whilst they were reasonably required to do so. This gave cause for the KSA to also to fine the directors individually.

Notices of objection to the decision of the KSA can still be lodged.

Please click here for the report issued by the KSA.