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The Dutch Gaming Authority Proves Crime Doesn’t Pay
By Shane Addinall Feb 04, 2023 LegalityThe Ksa wrapped up a longstanding court case and imposed massive fines on unlicensed operators bringing their 2023 total to just over €25 million.The Ksa has proven to be a methodical, patient and determined online gambling regulator. The region’s previous live-and-let-live approach to operators offering unlicensed games of chance before introducing a reformed gambling act led many to consider them weak.
However, with their recent spate of fines against new unlicensed operators and the culmination of a court case that originated in 2012, the regulator has proven to be very effective, having raked in €25 million from these cases.
The Memory of an Elephant
The biggest hitter in accruing this incredible €25 million in fines was a court case that has been ongoing since 2012. The government pursued legal action against three owners of seven illegal gambling sites and the thirteen companies that made up its larger enterprise.
The legal action listed the following:
Quote"The charges against the Defendant concern – in short and generally stated – violation of Article 1, paragraph 1, under a, of the Betting and Gaming Act, by offering games of chance via the internet without a license in the Netherlands. When discussing this fact, the court will refer to the charges as: offering online games of chance without a license for the sake of brevity."
After more than a decade of legal proceedings, the courts found the operators guilty of a range of charges which included:
- Leading a criminal organisation.
- Ongoing and intentional money laundering – several counts.
- The provision of forged legal documents – several counts.
- Fraudulent bankruptcies committed by a legal person.
- Deliberate violation of Article 1, paragraph 1 of the Betting and Gaming Act.
The cumulative fines in the case exceeded €24 million and held the possibility of up to 24 months in jail.
Always Looking for Another Big Fish
Far from being distracted by such a big case, the Ksa also pursued several more minor cases in 2022 and the beginning of 2023. The most notable of these is the €900,000 fine that it imposed on Shark77 for unlicensed gambling operations that specifically and intentionally targeted Dutch players.
Important issues raised in this case include:
- Offering games of chance without the cost of a license is seen as unfair competition.
- Unlicensed operators do not adhere to local safer gambling requirements.
- Players are not guaranteed fair play or that they will receive their winnings.
In both cases, the courts consider the licensing fees paid by legitimate online casinos during the investigation period and apply those costs as part of the settlement. This action is an attempt to encourage these operators to apply for a license and participate in the market legally.
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