Dutch Regulator Imposes Penalties on Winbet for Unlicensed Gambling Operations

The Netherlands Gaming Authority (KSA) has taken decisive action against Winbet NV, imposing a weekly penalty order to halt the operator’s unlicensed gambling activities in the country. Following an investigation, the KSA discovered that Winbet was facilitating illegal gambling through several online platforms, which allowed Dutch players to register, deposit funds, and participate in games of chance without regulatory oversight. The penalty, set at €280,000 per week, will continue to accrue until a maximum limit of €840,000 is reached if Winbet does not cease its operations.

Dutch gaming law strictly prohibits unlicensed games of chance, with regulations aimed at protecting consumers and maintaining a responsible gambling environment. The KSA found that Winbet’s websites—including galaxyspins.com, winnercasino1.bet, superb1.bet, and doctorspins.com—lacked measures to block Dutch users, allowing unrestricted access and participation. As KSA chair Michel Groothuizen highlighted earlier this year, the authority has intensified its enforcement efforts to address illegal online gambling operators, and the penalty imposed on Winbet aligns with this regulatory stance.

Penalty Order Highlights KSA's Firm Stance on Regulatory Violations

The penalty order issued to Winbet NV underscores the KSA’s zero-tolerance approach to unlicensed gambling. According to the KSA’s findings, users on Winbet’s sites were able to easily set up accounts and deposit money, bypassing Dutch legal safeguards and regulations. The KSA’s enforcement actions serve as a warning to other operators who might consider similar activities within the Netherlands’ regulated gambling market.

In addition to Winbet’s case, the KSA recently penalized BlockDance BV for offering unlicensed gambling services through its sites bc.game and bcgame.lu. Initial compliance efforts by BlockDance were short-lived, as the sites later reopened access to Dutch players, prompting the KSA to issue a penalty order. BlockDance now faces similar financial consequences of €280,000 per week until it reaches the €840,000 cap unless it removes access for Dutch users definitively.

The KSA emphasized that such penalties are instrumental in curbing the illegal supply of gambling services, helping to deter operators from continuing unlicensed activities. The regulator’s consistent enforcement approach reflects its commitment to upholding the integrity of the Dutch gambling landscape and ensuring the protection of players through legal and regulated means.

Dutch Market Regulation and Future Enforcement Measures

The Netherlands’ gambling regulations require all operators to hold a valid license issued by the KSA, covering only sports betting, horse racing, and poker for online offerings, while online casino games remain restricted. These regulations, which form part of the 2021 Remote Gambling Act, mandate strict compliance and transparency from operators to create a safe gambling environment for Dutch consumers.

The KSA has warned that unlicensed operators continuing to bypass Dutch regulations will face significant financial penalties and other enforcement actions. As the online gambling industry evolves, the KSA is expected to refine its regulatory framework further, emphasizing measures to protect consumers and limit the influence of illegal gambling operators. By enforcing substantial fines and demonstrating vigilance, the KSA seeks to uphold its commitment to consumer protection and responsible gambling practices across the Dutch market.

Source: KSA Imposes Major Penalty on Winbet NV for Unauthorized Gambling Services, lcb.org, October 28, 2024.