Dutch Gambling Regulator Slaps Illegal Operators With Record Fines

Dutch Gambling Regulator Slaps Illegal Operators With Record FinesThe Netherlands is hoping to have its online gambling market liberalized by 2017. In the meantime, the country’s gambling regulator, Kansspelautoriteit (KSA), has been attempting to crackdown on illegal websites by issuing those businesses not heeding its warnings with huge fines.
Two such companies which have already been hit with penalties are Redcorp SA and Bluemay Enterprises NV, who in October 2014 were fined €130,000 each for illegally promoting their products to Dutch-based gamblers. One of the two websites involved was Redslots.com, but apparently the huge fine did not act as much of a deterrent as both companies have now been issued with further fines of €240,000 apiece for continuing their illegal ways.
The latest illegal marketing fines were the result of an investigation that began in November 2014, with the KSA also finding that Redcorp SA and Bluemay Enterprises had apparently been using Megaten Ltd to process its payments, a subsidiary of Bluemay Enterprises which apparently ceased trading back in 2004. KSA explained that the record fines were justifiable as the companies were obviously aware that their presence was illegal in the Netherlands on account of the fines they had already received in the past. Commenting on the matter, KSA chairman Jan Suyver said:
“The penalty for these offenders shows providers that the Kansspelautoriteit does not let go, even if they are fined once already and even if they change their domain name.”
In 2014, around 1 million Dutch gamblers spent up to €800 million on illegal sites, according to a KSA annual report. As a result, the regulator has relentlessly been pursuing and fining transgressors, although their task has been complicated due to the “cross-border nature” of the internet. A new bill being discussed is designed to make the whole process easier, and as Suyver explains:
“It would be even better if the Kansspelautoriteit were to get additional powers to protect Dutch consumers, such as the blocking of payments.. We can only hope that the parliament adopts legislation quickly.”


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