The Kansspelautoriteit (KSA), the Netherlands Gaming Authority, has issued a record fine of €24.8m ($28.9m) against Novatech for providing illegal gambling opportunities, and a €1.8m fine against Fortaprime SRL
Both operators had been warned about running websites that offered illegal gambling to Dutch players, but failed to take action.
As part of the investigation, KSA employees were able to create accounts, make deposits and take part in illegal games of chance on the site.
No technical measures had been taken to prevent people from the Netherlands from accessing these sites, nor were there any visible age verification measures.
Players could also deposit and withdraw using cryptocurrency and other anonymous payment methods, which creates problems with Know Your Customer (KYC), Anti-Money Laundering (AML) and Counter-Financing Terrorism (CFT) procedures.
Michel Groothuizen, KSA Chairman, said: “We determine the amount of the fine on the basis of the (estimated) turnover that the illegal provider has achieved from players from the Netherlands.
“In doing so, we are limited by the law that says that the fine may be a maximum of 10% of the worldwide turnover. Novatech earned hundreds of millions from its illegal offer, and that mainly from Dutch players.
“A fine of 24 million sounds impressive, but without the maximum of 10%, the fine would have amounted to more than 100 million euros; an amount that would be better suited to this violation."
The KSA statement emphasised that it was “hindered by Dutch legislation” and that “the fines are disproportionate to the illegal profits that these companies have made.”
Fortaprime has previously used Dutch influencers to advertise its websites, and the KSA reminds people that individuals advertising illegal services can be sanctioned, too
