The Dutch Gambling Authority, the Kansspelautoriteit (KSA), has issued an enforcement order against a company found to be running an illegal promotional lottery, warning that continued breaches could result in penalties of up to €450,000.
Companies are allowed to offer prizes to promote their products, but strict conditions apply. For example, such promotions may only be run once a year, participation must be free and companies must publish full terms and conditions on their website.
The regulator said it received multiple complaints about a business repeatedly raffling off cars. Customers who spent a minimum amount on the company’s services or products were then entered into a draw to win a vehicle.
Following these complaints, the KSA held discussions with the company’s owner. During this meeting, the rules on promotional activities were clearly explained, along with the possible consequences of running further draws.
Despite this warning, the company continued to organise prize draws. As a result, an order subject to a penalty payment has now been imposed requiring the owner to stop immediately or face fines of €150,000 per breach, up to a maximum of €450,000.
In separate news from the Netherlands, the Government announced plans to introduce stricter regulations on online gambling, following a proposal by State Secretary for Justice and Security Claudia van Bruggen.
The Government aims to introduce a near-total ban on online gambling advertising and bonuses, overarching deposit limits and additional tools to tackle illegal gambling offers. It is also investigating ways to limit the number of licensed online operators.
Recently proposed deposit limits would require players to prove financial capacity before increasing spending caps, supported by affordability checks
