The Netherlands Gaming Authority (KSA) has launched a revised general fines policy to standardize enforcement and improve clarity in regulating the Dutch gambling industry. Effective January 1, the framework outlines stricter penalties and categorization for violations by gambling operators and related entities.
New Fine Categories and Structure
Under the updated policy, the KSA has established five fine categories, with penalties ranging from a minimum of €500 in Category 1 to €2 million in Category 5. Severe breaches within Category 5 can incur fines linked to turnover, amounting to 3% of the offender’s gross revenue. This turnover-related mechanism aims to enhance enforcement effectiveness.
Certain cases involving violations of the Money Laundering and Terrorist Financing (Prevention) Act (Wwft) may attract even higher penalties in the Netherlands. Additionally, fines may be calculated based on financial benefits gained through non-compliance, potentially doubling to reflect the economic advantage obtained.
The gambling regulator employs a structured, nine-step process to determine appropriate fines for violations. This plan incorporates factors like the basic fine amount, repeat offenses, and the seriousness of the violation. Key steps include:
- Assigning a Basic Fine: Violations start with a category-based fine, such as €500 in Category 1 or €2 million in Category 5.
- Adjusting for Recidivism: Penalties may double for repeat offenders.
- Evaluating Violation Severity: Fines can rise or fall by up to 50% depending on the breach's impact.
- Assessing Culpability: Offender responsibility levels influence fine adjustments by a further 50%.
- Considering Operator Size: Fines scale according to gross turnover, with smaller operators fined lower percentages compared to larger businesses.
Additional considerations include multiple offenses, mitigating circumstances, and offenders’ financial capacities. In certain cases, payment plans might be offered without reducing the fine amount.
Enhanced Enforcement Standards
Michel Groothuizen, the KSA’s chair, highlighted the policy’s intent to clarify compliance expectations. “The KSA is becoming increasingly professional as an organization,” Groothuizen explained. The policy provides “clarity for the parties under our supervision and hopefully motivates them even more to avoid fines.”
The KSA retains specific fine systems for sectors like illegal online gambling and gaming machines, but the broader framework standardizes penalties across diverse violations. The approach aligns consistently with factors like turnover, severity, and culpability.
This comprehensive policy follows significant criticism from industry stakeholders regarding the KSA’s previous enforcement methods, which they argued lacked consistency and fairness. The standardized system aims to address these concerns and improve oversight.
While the regulator has focused on unlicensed operators, such as those providing illegal gambling services, the revised policy also applies to license holders within the regulated market, introduced in 2021. Groothuizen emphasized that experience gained since the market’s opening helped shape the current policy framework.
Further changes to the Dutch gambling landscape are also anticipated. Legal Protection Minister Teun Struycken announced plans to revise gambling policy, addressing competition issues within the land-based sector where Holland Casino holds a monopoly. He stated, “By March 2025, I will send my vision on the future development and objectives of gambling policy.”
These upcoming adjustments could impact how gambling operators compete, particularly in light of heightened regulation within the online sector.
Source:
''Government Gazette of the Kingdom of the Netherlands'', zoek.officielebekendmakingen.nl, January 02, 2025.
