Dutch regulator hits illegal operators with record €24.8m fine

The Kansspelautoriteit (Ksa) has imposed significant penalties on two illegal gambling operators, including a record-breaking fine that highlights the regulatory challenges of cross-border enforcement in the digital gambling sector.

Fortaprime SRL received a €1,795,000 penalty for operating eight gambling websites targeting Dutch consumers, while Novatech faces a €24,846,000 fine – the highest penalty ever issued by the Dutch gambling authority – for illegal operations through two platforms.

Extensive Illegal Operations Uncovered

Fortaprime's illegal network included amonbet101.com, supraplay.com, amonbet.com, bilucky.com, gxspins.com, kaasino.com, hiddenjack.com, and luckymax7.com. Novatech operated through Qbet.com and 55Bet.com. Both operators had previously received cease and desist orders with penalties from the Ksa.

During investigations, Ksa staff successfully created player accounts, made deposits, and participated in gambling activities on the examined sites. The operators had implemented no technical measures to prevent Dutch participation, demonstrating clear regulatory violations.

The enforcement action revealed multiple aggravating circumstances that influenced penalty calculations. No age verification measures were visible on the investigated websites, while players could use cryptocurrency and anonymous payment methods – practices that facilitate money laundering according to the regulator.

Revenue-Based Penalty Structure

The Ksa applied revenue-based fines rather than standard penalties due to the substantial illegal earnings generated from Dutch players. The authority estimated both operators earned significantly more from Dutch consumers than standard penalty amounts would reflect.

However, Dutch legislation constrains the regulator's enforcement capabilities. Current law limits fines to a maximum of 10% of worldwide turnover, creating a significant gap between penalties and illegal profits.

"De boetehoogte bepalen we aan de hand van de (geschatte) omzet die de illegale aanbieder heeft behaald aan spelers uit Nederland. Daarbij worden we beperkt door de wet die zegt dat de boete maximaal 10% van de wereldwijde omzet mag zijn. Novatech verdiende honderden miljoenen aan haar illegale aanbod, en dat deed voornamelijk uit Nederlandse spelers. Een boete van 24 miljoen klinkt indrukwekkend, maar zonder het maximum van 10% was de boete uitgekomen op meer dan 100 miljoen euro; een bedrag dat beter zou passen bij deze overtreding."

— Michel Groothuizen, Board Chairman of Ksa

Broader Enforcement Strategy

The Ksa's approach extends beyond administrative penalties to include collaboration with payment service providers, hosting companies, banks, and major technology firms. The authority also targets promotional activities, noting that Dutch influencers advertised Fortaprime's offerings and warning that influencers promoting illegal operators face potential sanctions.

Regulatory Ceiling Challenges

The €24.846.000 penalty against Novatech, while representing the Ksa's largest enforcement action to date, underscores the limitations of current penalty frameworks. According to Groothuizen, without the 10% legal maximum, Novatech's fine would have reached over €100 million – a figure more proportionate to the operator's illegal earnings from Dutch consumers.

This enforcement gap raises questions about whether existing penalty structures provide sufficient deterrent effects against well-funded illegal operators generating substantial revenues from restricted markets.

According to Dutch Gaming Authority (KSA).