Fines of up to 100% of annual revenue proposed for unlicensed gambling in the Netherlands

Fines of up to 100% of annual revenue proposed for unlicensed gambling in the Netherlands

The proposal would also ban igaming ads in the Netherlands.

The Netherlands.- Opposition lawmakers have proposed a motion that would allow the Dutch gambling regulator Kansspelautoriteit (KSA) to impose fines of up to 100 per cent of a gambling operator’s annual revenue. The move comes after the regulator complained about the current 10 per cent cap when it issued a record €24m fine against Novatech last week.

Currently, the KSA can issue a turnover-related fine when it believes the standard fines at its disposal are disproportionate to the revenue generated from an illegal gaming offering. However, despite the record size of the fine against Novatech, the regulator said it believed its enforcement powers are hampered by current Dutch law and that the cap at 10 per cent of estimated revenue means that fines are disproportionate to the profits unlicensed operators make.

However, raising the ceiling for penalty orders is one thing. Enforcing them and collecting the cash from unlicensed offshore operators is another. Novatech, which also received a banning order in Sweden last week, relinquished its Curaçao licence shortly after the KSA’s ruling, limiting the regulator’s ability to pursue it.

The proposal to increase KSA’s firepower in terms of potential financial penalties comes from ChristenUnie leader Mirjam Bikker and Socialist Party leader Sarah Dobbe. Their proposal also seeks a ban on igaming ads – something the new minority government itself already put forward last month in its proposal for a blanket ban on gambling advertising in the Netherlands.

The opposition motion also proposes extending the minimum exclusion period under the national self‑exclusion system, Cruks, from the current six months to a full year. The lawmakers highlighted figures showing that approximately 450,000 new players have entered the Dutch online gambling market since it was regulated in 2021, with young adults aged 18 to 21 now accounting for about 22 per cent of active accounts.

Bikker warned: “Slot machines are now literally in your pocket, and you see gambling ads everywhere in the high street. It’s time for a complete advertising ban.”

The Netherlands introduced a ban on targeted gambling ads from July 2023 and on sport sponsorship from July last year. The previous government had pledged to overhaul gambling legislation last year. That was to include consideration of a potential rise in the legal age to play online slots from 18 to 21. However, the reforms stalled after State Secretary for Legal Protection Teun Struycken, who oversaw gambling policy, resigned in August amid disputes over sanctions against Israel.

No party won a majority in the Netherlands’ early election in October. The governing coalition comprises the centrist D66, the Christian Democrats and the right‑wing VVD. Trade association VNLOK has warned that prohibiting all gambling advertising could accelerate the shift to unregulated play.

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