Malta-Based Online Casino Gammix Limited Hit with Huge Fine in the Netherlands

Article by : Erik Gibbs Mar 4, 2024

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Gammix Limited, an online casino company based in Malta, faces a record-breaking fine of €19.7 million (US$21.3 million) from the Dutch Gaming Authority (KSA) for engaging in unlicensed gambling activities targeting players in the Netherlands.

This surpasses the previous highest fine imposed by the KSA and comes after the company had already been fined €4 million (US$4.33 million) for similar violations.

Notably, the previous record fines were €12 million (US$12.98 million) against N1 Interactive Limited and €10 million (US$10.81 million) against Videoslots Unlimited.

Operating under a Malta Gaming Authority license, Gammix Limited manages 21 distinct online casinos. By Dutch law, companies providing online gambling services to users in the Netherlands are required to hold a valid license.

The fine, amounting to 6.5% of the estimated gross revenue derived from Dutch users, also takes into account unfair business practices, reflecting the severity of the violations.

Despite receiving repeated warnings and directives, the company has allegedly failed to implement necessary measures to restrict players in the Netherlands from participating. Additionally, the KSA asserts that the company’s websites lack appropriate safeguards to prevent underage individuals from placing bets.

The KSA made its decision in December and officially published it on Thursday. Gammix Limited has filed an objection in response to the case. René Jansen, the chair of the KSA, underscored the significance of safeguarding Dutch players, expressing the necessity to adopt a robust stance against illegal gambling offerings.

Jansen highlighted the common trend among illegal operators who, in many instances, neglect player well-being and disregard responsible gambling practices. The case underscores these concerns, particularly the absence of clear age controls, which can have significant negative consequences.

The KSA found that Gammix’s websites were easily accessible from Dutch IP addresses, allowed account creation with Dutch details, and lacked a clear mention of the Dutch ban in their terms.

To support this, the KSA created accounts on multiple Gammix websites using Dutch information and deposited €20 (US$21.63) each from Dutch bank accounts.

Based on SimilarWeb data, the KSA estimated approximately 2.6 million Dutch users engaged with 12 Gammix websites, focusing on those with a minimum of 5,000 users in the country. With a per-user revenue of €115.12 (US$124.5), the gross turnover was estimated at nearly €303 million (US$327.69 million).

The fine, set at 4% of the total, included additional increments for factors like the absence of age verification, unreasonable withdrawal terms, unfair inactivity fees, permission for anonymous account deposits and features like autoplay and turboplay.

The KSA’s latest penalty targets various Gammix websites that cater to Dutch players, specifically mentioning rantcasino.com, betoriginal.com, bluvegas.com, cashimashi.com, goslot.com, nordslot.com, vegadream.com and scatters.com.

Notably, rantcasino.com and nordslot.com were previously implicated in 2022 allegations following inspections of those particular sites.