The Dutch Gambling Authority has imposed record fines on two internationally operating gambling companies that offered online gambling without a license to players in the Netherlands. The organizations did not have a Dutch license and processed their payments in cryptocurrency.
The company Novatech, known for the websites Qbet.com and 55Bet.com, must pay nearly 25 million euros. Fortaprime, which is behind the sites amonbet101.com, kaasino.com and hiddenjack.com, was fined nearly 2 million euros.
Gambling Addicts
According to the Dutch regulators, the websites targeted Dutch players while the companies had no license to offer gambling in the Netherlands. Online gambling has been legalized in the Netherlands for several years but is only allowed under strict regulations. In recent years, it has become increasingly apparent in the Netherlands that there are many 'gambling addicts', mostly young people. Research shows that legalized gambling companies do not always comply with all rules.
Promotion
Employees of the regulator (Ksa) were able to easily create player accounts, deposit money, and actually gamble. The companies had not implemented technical measures to prevent participation from the Netherlands, although this is required by Dutch law.
Counterfeit Money
Additionally, players could pay with cryptocurrencies and other anonymous payment methods. According to the regulator, this increased the risk of money laundering. The fines are linked to the profits that the companies allegedly generated from the illegal offerings according to the Ksa. “Novatech earned hundreds of millions from its illegal offerings, primarily from Dutch players,” says Ksa chairman Michel Groothuizen.
European
The case illustrates a broader principle increasingly applied in many countries: national legislation applies not only in the physical world but also to activities on the internet. Companies that offer online services to consumers in a particular country must comply with the rules of that country, even if the company itself is based abroad.
Within the European Union, this principle is also codified in new digital regulations, such as the Digital Services Act (DSA) and the Digital Markets Act (DMA). These laws are intended to ensure that large international (internet) companies comply with European and national rules when operating in the European market.