KSA’s record €37m fine signals tougher crackdown on illegal gambling

The regulator escalated enforcement after finding repeated breaches and signs of elevated compliance risks.

Key takeaways:

• The KSA imposed a record €37m fine on EOD Code SRL for offering unlicensed gambling in the Netherlands.
• The operator had previously received a penalty payment order for the same activity.
• Investigators found Dutch players could access and gamble on multiple EOD Code websites without effective restrictions.
• The regulator cited aggravating factors including a lack of visible age verification and the use of cryptocurrency and anonymous payment methods.
• The fine was calculated using estimated revenue from Dutch players, marking the largest penalty the KSA has issued for illegal gambling offerings.

The Dutch gambling regulator Kansspelautoriteit (KSA) has issued a record €37m fine against EOD Code SRL after concluding the operator illegally offered online gambling to players in the Netherlands through multiple websites. Beyond the size of the penalty, the decision highlights the regulator’s willingness to use revenue-based fines and broaden investigations across entire operator networks when repeat violations are detected.

The Netherlands.- The Dutch gambling regulator Kansspelautoriteit (KSA) has announced that it’s imposing a record €37m fine on EOD Code SRL for offering illegal gambling in the Netherlands. It said the operator was offering games of chance in the country without a licence on various websites, including Instantcasino and Skyhills. EOD Code had previously been issued a penalty payment order for the same reason.

According to the KSA, its employees were able to gamble on various of the company’s sites without measures being taken to prevent participation from the Netherlands. The original probe focused on Instantcasino, but further investigation revealed even more websites involving illegal gambling, namely skyhills.com, slotmonster.com, betiro.com, betblast.com, fastslots.com, goldenpanda.com, sambaslots.com, winningz.com, incognitocasino.com, foxygold.com, and luckypays.io.

The KSA said there were multiple aggravating circumstances on the various websites, such as the lack of visible age verification. Visitors also had the option to pay with cryptocurrency and anonymous payment methods. This facilitates money laundering.

When imposing fines, the KSA may opt for a revenue-related amount if the standard fines are disproportionate in size to the revenue generated from the illegal offering. Because it estimates that EOD Code earned more from bets placed by Dutch players, a higher fine based on a revenue estimate was chosen – the highest the KSA has imposed for illegal offerings to date.

“Taking action against illegal offerings is not limited to administrative fines, as mentioned here, but also involves intensive collaboration with third parties, such as payment service providers, hosting parties, banks, and major tech companies,” the KSA stressed.

FAQs

Why did the KSA fine EOD Code €37m?

The KSA found that EOD Code offered online gambling to Dutch players without a licence. The regulator also determined that Dutch users could access several of the company’s websites despite restrictions meant to prevent participation.

Which gambling websites were linked to the KSA investigation?

The investigation started with Instantcasino and later expanded to additional sites, including Skyhills, Slotmonster, Betiro, Betblast, Fastslots, GoldenPanda, SambaSlots, Winningz, IncognitoCasino, FoxyGold and LuckyPays.

Why was the fine so large?

The KSA concluded that standard penalties would be disproportionate given the estimated revenue generated from Dutch players. It therefore used a revenue-based calculation, resulting in its largest-ever fine for illegal gambling offerings.

What compliance concerns did the KSA identify?

The regulator pointed to a lack of visible age verification on some sites and the availability of cryptocurrency and anonymous payment methods, which it said can facilitate money laundering.