Dutch Gambling Authority Fines a Total of €3.5m in 2019

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December 30th, 2019
Back Dutch Gambling Authority Fines a Total of €3.5m in 2019

Online casino operators have cashed out a record €3.5 million to Kansspelautoriteit in 2019, according to the regulator. The figure has doubled in comparison to 2018 mostly due to an increase of the maximum fine to €200,000 and a surge of the penalized companies. At the end of the year, exactly 10 gambling operators were fined, including a repeat offender.

Among the sanctioned casino brands are Exinvest/1XCorp, Casumo, Onisac, Simbat, Spinity, Trannel International, ElectraWorks, TSG Interactive Gaming Europe, Royal Panda and LeoVegas.

Operators Still Targeting Dutch Players

At this point, Holland Casino is the only gambling establishment in the country allowed to provide games of luck to its residents. Despite the statewide ban for foreign operators, a group of casino brands still tries to target Dutch players through a loophole by offering proper language options and online payment service Ideal in their portfolio.

As a reminder, iDEAL is an e-commerce payment system used in the Netherlands, and it is based on online banking. The payment method allows Dutch customers to buy on the Internet by using direct online transfers from their bank account, suitable for online casinos as well.

In the meantime, The House of Representatives is actively working on a new law that would regulate the country’s online gambling market by 2021 and allow other foreign companies to launch their platforms. However, the new framework will be quite restrictive, with a number of elements against gambler addiction.

As part of the measures, players will have to register and state their limit, while operators may be required to periodically remind their members of the risk of addiction on screen. In addition, the online gambling establishments will have to appoint an addiction expert and pay astronomical gambling taxes of 29%, which is the second highest tariff in Europe.

Greece is definitely a leader when it comes to increased proceeds from the gaming industry, with a massive 35% tax on gross revenue. Sweden follows right behind, with an 18% financial stretch plus a license between €6,000 to €70,000. The Czech Republic incurs a 23% tax on sports betting, while slot machine operators must also pay up 35%.

In Italy, the tax rate is set at 22% as issued by Amministrazione Autonoma dei Monopoli di Stato back in 2012.

Breach of Regulations in Affiliate Marketing

Throughout the year, Kansspelautoriteit has issued penalties to a number of major iGaming brands, including Kindred, LeoVegas and PokerStars. Back in August, the Dutch Gambling Authority enforced a €470,000 fine from the Malta-based online gambling group for accepting bets without a license. Kindred consists of eleven brands, including Unibet, 32Red, Maria Casino and more, providing poker, bingo, slots and sports betting services.

One of LeoVegas’ successful gaming brands Royal Panda received a $826.196.25 penalty for offering games of luck within the Dutch territory, also without a license. Last but not least, the KSA has also prevented 23 affiliate marketing sites from promoting online gambling activities in the country, warning them to withdraw iGaming ads that contain promotion material.

The Netherlands regulator will continue to fight online gambling in 2020. Rene Jansen, chairman of KSA said:

“We will continue to do so as long as online offerings are illegal. Earlier this month we announced that from January 1, 2020, we will be adding age verification as a criterion. Illegal providers of online gambling who do not visibly verify the age of participants before the registration process is completed, will be dealt with as a priority with the KSA. Preventing minors from taking part in gambling is an important priority of the KSA.”

Source:

“Ksa: 3.5 million euros in fines in 2019”, kansspelautoriteit.nl, December 27, 2019.

“a surge of the penalized companies”

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