The Dutch Council of State has ruled that the Gambling Authority (KSA) was right to impose a €12.6m fine on gambling company N1 for illegally offering online gambling in the Netherlands through the Bob Casino brand. The regulator originally issued the fine in late 2022.
N1 appealed the decision, challenging, among other points, the KSA’s approach and its method for calculating turnover. However, the Council of State found that the website was accessible to, and oriented towards, Dutch users, which was sufficient to establish a breach of the law.
The Council also confirmed that both the fine and the regulator’s policy were lawful and proportionate, including the use of global turnover to determine the maximum penalty. N1’s arguments regarding lack of targeting, unfairness and disproportionality were rejected.
The KSA is among the most active regulators in Europe when it comes to enforcing against illegal gambling.
Last month, the regulator imposed a record fine of nearly €25m on Novatech Solutions, the company behind Qbet, for providing illegal online gambling services. The penalty reflected the operator’s substantial revenue from Dutch players.
The KSA chairman, Michel Groothuizen, then stated the regulator is constrained by legislation that caps fines at 10% of global turnover.
He noted that while a €24m Novatech fine may appear significant, it would have exceeded €100m without the legal cap, which would have been more proportionate to the scale of the violation
Thus, the KSA concluded that current Dutch laws limit its enforcement powers and result in fines that do not fully reflect the illegal profits made by such operators.
The KSA has recently refreshed its Gaming Machine Guide for Municipalities, aiming to clarify responsibilities and strengthen local oversight of gambling activity across the Netherlands
