Dutch gambling regulator Kansspelautoriteit (KSA), has imposed its largest-ever penalty of almost €25 million on Novatech, for illegal operations via unlicensed gambling websites that actively targeted Dutch customers.
The regulator identified breaches relating to the illegal operation of sites such as Qbet.com and 55Bet.com, uncovering serious consumer protection and anti-money laundering failures.
Enforcement tightened, but legal limits bite
Novatech was found to have allowed Dutch users to register, deposit and gamble without implementing sufficient geo-blocking or age-verification measures. The operator additionally accepted cryptocurrency and anonymous payment methods, further raising concerns about money laundering risks.
According to the KSA, Dutch law restricts fines to a maximum of 10% of the operator’s global turnover. This limited the size of the sanction despite the serious nature of the offences.
KSA chairman Michel Groothuizen expressed frustration over the statutory cap on penalties. He said: “Without the 10% cap on global revenue set by Dutch law, the penalty would have exceeded €100 million, an amount that would be more appropriate for this offense.
“The fine imposed on Novatech is the largest fine the KSA has imposed on an illegal party to date.”
Separately, Fortaprime also received a fine of approximately €1.8 million for offering unlicensed betting brands to Dutch punters.
Not the first rodeo
This is another in a string of fines imposed by KSA. In February prediction market operator Polymarket was fined up to €840,000 for operating in the Netherlands without a gambling licence.
The regulator’s findings highlighted multiple compliance shortcomings, including insufficient age verification, inadequate geo-blocking and the acceptance of anonymous payment methods that increased money laundering risks.
While the majority of Dutch players gamble via licensed operators, a disproportionately large share of online gambling expenditure is captured by a limited number of illegal websites.
Scope of regulations on illegal operations
The Netherlands introduced a regulated online gambling market in 2021. This was to enhance player safety and shift gambling activity into a supervised environment. Since implementation, the government has introduced various strict measures such as tighter advertising restrictions and mandatory deposit limits for players.
The market increased its tax on gambling operators in two parts over the last year. A recent letter by a prominent trade body called for a review of the system, as it was heavily impacting revenue and tax income in Netherlands, as players have shifted to the black market.
