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Outrageous Banking Loophole Shut Down by the Dutch Regulator
By Shane Addinall Mar 13, 2022 IndustryConcerned Dutch citizens recently received reassurance from their government and gambling regulator. KSA has their finger on the pulse and remains focused on protecting minors and making gambling safe for all.The Dutch gambling regulator, Kansspelautoriteit (KSA), embodies proactivity by uncovering an unreported procedural loophole, thereby negating underaged gambling. A certain deposit method potentially allowed minors to deposit money through a third-party account without being detected as underaged.
Parliament questioned minister Franc Weerwind from the Department for Legal Protection regarding the matter and he pointed out that KSA flagged the issue. The regulator discovered that players could deposit money from a bank account that someone else owned, via a remote payment system accepted by operators.
At this time, there are no records of any minors who accessed the loophole before lawmakers discovered and rectified it.
A Critical Discovery In the Nick of Time
A payment solution offered to Dutch players had a procedural loophole that their government addressed and rectified before any harm was done. Players with certain operators could deposit money from accounts not held by them.
Minister Weerwind reminded operators that the country’s regulation specifies how player identification protocols must happen. Operators in the Dutch jurisdiction may only accept deposits once they verify the source account against the player’s details. This not only aids in curbing underaged gambling but other fraudulent activities like money laundering as well.
KSA noted that the operators involved in the mishap were in process of eliminating such issues and removed the specific deposit method as an option to their patrons. According to Weerwind, the European country’s regulation prohibits third-party deposits. Weerwind explained:
“When creating a player account, the identity is established and verified, among other things, by means of a check on the Citizen Service Number. In addition, a player must identify himself every time he or she wants to access his payer account, for example by means of username and password.”
According to the minister, the discovery did not follow incidents that affected minors.
Holland Casino Slipped Up
Another issue referred to by Minister Weerwind implicated the Dutch gambling giant, Holland Casino. The operator discovered a loophole where profile checks only verified last names against bank accounts. The issue, which Holland Casino resolved in the meantime, allowed players to link their bank account against someone else’s with the same surname as them, although first names and other details differed.
Weerwind said, “In addition, only money can be deposited with a payment account that can be unambiguously traced to the person of the player. This minimises the chance that a minor can actually play with a licensed provider.”
The Dutch government and the KSA endeavour to minimise gambling exposure to minors utilising effective regulatory protocols. These discoveries follow the regulator’s warnings to operators regarding irresponsible advertising and concerns that marketing practices may attract underaged gamblers.
Ahead of the Game
KSA and the Netherlands government take further steps to prove their proactive approach to managing a regulated market that puts player protection at the forefront. Uncovering and correcting regulatory loopholes before harm is experienced attests to a remarkable gambling authority.
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