Gambling operator warned for breach of withdrawal rules in the Netherlands
The KSA said it considered the operator’s withdrawal practice to be “highly undesirable”.
Key takeaways:
- The Dutch gambling regulator, KSA, reprimanded operator 711 for requiring some customers to wager deposited funds before withdrawing them, a practice that is generally prohibited unless linked to a bonus under strict conditions.
- 711 said the policy was part of its anti-money laundering procedures, but the regulator clarified that withdrawal delays for investigations must be temporary and cannot require customers to gamble their deposits.
- Following discussions with the KSA, 711 changed its procedures, allowing customers who do not want to wager their funds to receive refunds through their original payment method.
The Netherlands.- The Dutch gambling regulator Kansspelautoriteit (KSA) has reprimanded the operator 711 for requiring some customers to wager deposited funds before they could withdraw them. This type of wagering requirement is only permitted in conjunction with an offered bonus, and even then, under strict conditions, the KSA said. In all other cases, gambling companies must always pay out as quickly as possible.
The KSA received a report that 711 applied such wagering requirements to people using payment methods other than a ‘regular’ bank account. According to the operator, the procedure was established as part of measures to prevent money laundering.
However, while the KSA acknowledged that payouts may be delayed in the context of a money laundering investigation, such a delay must be of the shortest possible duration and the payment may not be suspended permanently. Furthermore, a gambling company may not require that the deposited money be wagered at least once.
The regulator said it considers this practice to be “highly undesirable” and immediately entered into discussions with the company. Following these discussions, 711 has taken measures to prevent recurrence and has clarified that players who did not wish to wager the amount could have it refunded to their original payment method.
The KSA stressed that gambling companies were informed in 2024 about the obligations and exceptions regarding the immediate payout of player funds , and that this type of violation should no longer occur.
“When someone wishes to withdraw their deposited money, that balance must be refunded immediately. Gambling companies may not impose structural conditions that prevent such immediate payout,” the KSA said.
FAQs
Why did the KSA reprimand 711?
The regulator found that 711 required some customers to wager deposited money before they could withdraw it, which breaches rules requiring player funds to be paid out immediately in most circumstances.
Can gambling operators delay withdrawals for anti-money laundering checks?
Yes, but only for the shortest time necessary to conduct an investigation. Operators cannot permanently block withdrawals or force customers to gamble their deposited funds.
What changes has 711 made following the regulator’s intervention?
711 has updated its procedures to prevent the issue from recurring and clarified that customers can have their deposited funds refunded to their original payment method without having to place a bet.
