KSA Raises Fines for Illegal Gambling Terminals

The Dutch Gambling Authority (Kansspelautoriteit/KSA) unveiled a tightening of its fine policies for gambling terminals. According to the regulator, the old policies were outdated, prompting the need for change.

According to the KSA, the new rules outline a significant increase in the fine size. Whereas fines for the illegal provision of gambling terminals ranged from EUR 7,500 to 20,000 (approximately $8,000-21,400) per device, violators will now have to pay between EUR 25,000 and 100,000 ($27,000-$107,000) per device instead.  

The fine can vary based on various circumstances. Repeated offenses, previous warnings or allowing minors to gamble are all reasons to increase the fine, the regulator reasoned. The KSA further noted that its fine for such machines does not take into account whether they were used wholly or partly as gambling terminals.

The original policy was introduced in 2014 and no longer aligns with the state of the gambling market and the economy as a whole.

The KSA explained that gambling terminals, which are sometimes also referred to as internet terminals or football terminals, are devices that players can use to gamble. However, these devices, the regulator added are “almost always illegal.”

The Netherlands, for context, allows licensed operators to offer slot machines to their guests. However, the country defines gambling terminals as a separate type of machine.

The KSA expressed concern about the proliferation of such devices, noting that portable devices such as laptops and mobile phones are making up an increasingly large share of the gambling terminal market.

The KSA Continues Its Regulatory Journey

The Kansspelautoriteit has been hard at work cracking down on unlicensed gambling amid concerning harm rates in the Netherlands. The authority’s goal is to channel consumers toward the regulated market while making sure that said market is fair and balanced.

To that end, the KSA continues to issue fines to those who violate the country’s strict laws on gambling. This may include both licensed operators that commit offenses and companies that have no license at all.

For example, the regulator just recovered penalty payments from L.C.S. Limited and Blue High House S.A., two unlicensed operators that previously faced financial sanctions for offering unauthorized games of chance to Dutch players.

In other news, a number of Dutch players recently launched lawsuits against gambling operators, asking them to refund their lost bets. The plaintiffs argue that the operators they played with lacked a license at the time of the bets, meaning that the wagers should be voided. As instances of such lawsuits increased in number, Dutch courts asked the Supreme Court for clarity.