The KSA has reinforced its commitment to suppressing unlicensed gambling by imposing two major penalties on operators providing services to the Dutch market without the necessary authorization.
According to the KSA, Fortaprime SRL and Novatech allowed Dutch users to access their platforms, facilitating transactions via cryptocurrency while failing to implement mandatory age verification protocols.
Although there are ongoing difficulties regarding the collection of these fines, Fortaprime was ordered to pay €1.8m (£1.6m), while Novatech received the largest fine ever issued by the KSA to an offshore entity, totaling €24.9m.
Michel Groothuizen, Chairman of the KSA, stated: “We calculate the penalty based on the estimated revenue the illegal provider has generated from Dutch players.
“In doing so, we are constrained by legislation that caps fines at 10% of global turnover. Novatech generated hundreds of millions from its illicit services, primarily from players in the Netherlands.
“While a €24m fine appears substantial, without the 10% cap, the penalty would have exceeded €100m—a figure more appropriate for the severity of this violation.”
Beyond the unauthorized provision of games, the KSA noted that Fortaprime’s services were promoted by Dutch influencers, an activity that is strictly prohibited within the Netherlands.
This development coincides with warnings from European operators regarding the growing threat posed by the black market ahead of the upcoming World Cup.
During a recent SBC Digital Day event, Aviv Sher, CEO of Codere Online, expressed his view that “most customers do not truly understand the distinction between regulated and unregulated brands.”
He added: “Regulators are highly efficient at enforcing rules, taxes, and limitations on licensed operators to ensure player safety, yet in many jurisdictions, we rarely see a comparable effort aimed at pursuing black-market operators.
“Only a few governments treat this as a priority, while in most regions, action remains minimal. Meanwhile, these operators face far fewer restrictions, and major events like the World Cup provide them with significant opportunities to acquire new players.
“A clear example can be seen in UK search results for terms like ‘how to bypass betting limits’ or ‘how to gamble while self-excluded.’ You will frequently find unauthorized sites offering exactly that. They specifically target players who have been restricted by regulated operators.”
While the KSA’s actions are welcomed by Dutch operators, there have been widespread appeals for a more balanced taxation system to support the growth of the regulated market.
Trade associations Vergunde Nederlandse Online Kansspelaanbieders (VNLOK) and VAN Kansspelen, alongside operators Nederlandse Loterij and Holland Casino, recently sought to highlight the impact of current tax rates to the House of Representatives.
These trade bodies and operators have proposed an action plan to address the decline in tax revenue, which includes timely assessments, the integration of findings, and the consideration of future policy adjustments.
Björn Fuchs, Chair of VNLOK, cautioned: “The government is attempting to generate extra revenue through this measure, but is achieving the opposite. We are witnessing decreased tax income, an increase in illegal offerings, and less funding for sports and charitable causes.
“This is not only financially imprudent, but it also undermines the policy of player protection. Ultimately, the player is the one who suffers from this policy.”