More Votes To Ban on Online Gambling Ads in the Netherlands!
August 8, 2019 Kristina Vujadinovic
Electraworks, owned by GVC Holdings, was hit hard by the Dutch gambling regulator that set a very high penalty for the brand.
The company will have to pay a €350,000 (£323,000/$391,000) fine issued by Kansspelautoriteit (KSA) for illegally offering online casino and sports betting services via its bwin.com website in the country.
The Dutch gambling regulator’s investigation led to the discovery that the platform was offering a vast selection of the online sports bets and games of chance during an undisclosed period, including roulette, blackjack, and poker.
According to the KSA…
… consumers in the country were the specific target of the website. That conclusion comes from the fact that the company was offering payment method iDEAL which is Dutch-focused.
The Dutch Gaming Authority cited undertaken research:
“At least for a certain period of time the BWin.com website was offering online games of chance. There was a large selection of sports bets on the site. It was also possible to play live casino games such as roulette, blackjack and poker. The site focused (also) on Dutch consumers. This is evident from the use of the Dutch payment method iDEAL. Offering the possibility of gambling is prohibited in the Netherlands without a license. Under the current Gambling Act, it is not possible to obtain a license for online gambling.”
Although the Netherlands is preparing for the launch of the regulated market, online gaming is currently illegal in the country.
The Dutch Senate in February ed the Netherlands’ Remote Gambling Act, and its subject to approval from the Ministry of Justice and Security.
It is expected that the law will come into force on July 1, 2020. After that happens, the KSA will draw up license conditions, with the hope of opening up the market on January 1, 2021.
The regulator is strict when it comes to illegal gambling operations, so the high fine to Electraworks isn’t a precedent. A series of penalties were issued to operators proven to have been offering online gambling services. Among sanctioned brands in recent months are Casumo, Mansion Group’s Casino.com, 1xBet, William Hill and MRG.
“When combating illegal online offerings, the KSA focuses primarily on providers who target on Dutch consumers. The use of the iDEAL payment method is thereby a criterion,” said KSA in a statement.
As part of its preparations for launching a regulated market…
… KSA has been clamping down on illegal gaming and related activities, with Electraworks latest added to the list of the fined operators.
The Dutch regulator has set out new anti-money laundering prevention and duty of care guidelines for operators that are issued with licenses just last month.
In addition, it had proposed a rule requiring prospective igaming licensees to have not operated in the market for two years before they are permitted to launch in the regulated market.
Source:
“Electraworks hit with €350,000 Dutch fine”, igamingbusiness.com, August 7, 2019.
It must be very profitable for operators to engage in this activities, since they are disregarding the risks of very high penalties.