The Netherlands’ Gaming Regulator Updates Rules For Issuing Fines

Article by : Erik Gibbs Jan 6, 2025

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The Dutch Gaming Authority, Kansspelautoriteit (KSA), has announced updates to its fine policy, which will take effect on January 1, 2025. This revised framework aims to offer more clarity and transparency for gambling operators and other entities under the authority’s supervision. 

The policy, published in the Government Gazette, applies to violations outlined in the Netherlands’ Remote Gambling Act and the Money Laundering and Terrorist Financing (Prevention) Act (Wwft).

The new policy introduces a structure divided into five categories, each with a specific range and basic fine amount. Fines in the first category range from €0 to €500 (US$0 to US$520), with the base penalty set at €500 ($520). In the second category, fines extend from €0 to €10,000 (US$0 to US$10,400), with a standard fine of €10,000 (US$10,400). 

The third category features penalties between €0 and €200,000 (US$0 to US$208,000), with a base amount of €100,000 (US$104,000). The fourth category ranges from €0 to €1 million (US$0 to US$1.04 million), with a basic fine of €500,000 (US$520,000). 

The fifth category, which applies exclusively to Wwft violations, involves fines from €0 to €4 million (US$0 to US$4.16 million), with a base fine of €2 million (US$2.08 million). For non-Wwft violations in the fourth category, the KSA may add a turnover-based fine of 3% of the offender’s gross revenue to ensure penalties remain impactful.

To ensure consistent and fair enforcement, the KSA developed a nine-step process for calculating fines. This process begins by determining the base fine amount and considers whether the violation is a repeat offense, which could double the penalty. 

The seriousness of the violation is evaluated, factoring in its duration, consequences, and any potential risks to integrity. The culpability of the license holder is assessed, allowing for adjustments of up to 50% either way. Additionally, the gross turnover of the offender or its corporate group may influence the penalty amount. 

Special circumstances, such as voluntary reporting or significant corrective actions, could reduce fines by up to 25%. Related violations are considered to ensure appropriate penalties, while benefits gained from the offense are taken into account to prevent fines from being lower than the profits obtained. Lastly, the financial capacity of the offender is reviewed to ensure penalties are proportionate.

Michel Groothuizen, Chair of the KSA board, emphasized that this updated policy reflects the authority’s growing expertise since the online gambling market in the Netherlands launched in 2021. The first fines for licensed operators were imposed in 2022, and the updated framework is designed to provide clarity and encourage compliance.

By formalizing these guidelines, the KSA aims to promote fair play in the gambling industry and ensure all parties under its oversight adhere to the rules.