The Dutch Gaming Authority (KSA) has issued a record €24.9m ($29m) fine to Novatech for offering illegal gambling to the country’s residents.
The company runs 55Bet and Qbet, which KSA investigators found were accessible to people in the Netherlands without any restrictions. Some especially aggravating factors included the lack of age verification checks, the acceptance of cryptocurrency, and the allowance of anonymous payments, which raised concerns about money laundering.
the fine could have amounted to as much as €100m ($116m)
The KSA based the fine on the estimated revenue Novatech generated from Dutch players, rather than a flat penalty. KSA Chairman Michel Groothuizen claimed he was frustrated that he could only fine the operator 10% of its global turnover. He said if that were not the case, the fine could have amounted to as much as €100m ($116m), based on the estimated turnover, much of which came from Dutch players.
The KSA is also working with payment providers, hosting parties, banks, and major tech companies to combat illegal platforms targeting residents. The body warned that any influencers caught promoting illegal platforms could face sanctions.
In addition to Novatech’s penalty, the KSA also fined Fortaprime SRL €1.8m ($2m). The company runs eight gambling sites, including AmonBet and GXSpins.
The likelihood of offshore operators actually paying fines is unlikely, as neither Novatech nor Fortaprime have a physical presence in the Netherlands and are registered offshore. The KSA previously warned both companies about their operations – a warning that was ignored.
