KSA Imposes €2.65 Million Fine on BetCity for Inadequate Protection of Young Gamblers
Background of the Fine
The Netherlands Gambling Authority (KSA), the independent regulator overseeing the gambling industry in the country, has fined BetCity €2.65 million (approximately $3.07 million) due to the operator’s failure to adequately protect young gamblers from gambling-related harm.
Investigation and Findings
The decision came after an extensive investigation conducted between October 2021 and March 2023. The probe focused on several young adult players who suffered significant financial losses while gambling on BetCity’s platform. The investigation revealed serious shortcomings in BetCity’s monitoring and intervention practices aimed at preventing problem gambling.
Transition of Ownership and Responsibility
In January 2023, Entain completed its purchase of BetCity, inheriting the issues stemming from the operator’s former management. According to the KSA, BetCity did not fulfill its legal responsibilities to monitor players for risky gambling behaviors or take timely action when signs of problem gambling emerged. BetCity appealed the fine, but the KSA dismissed the appeal in August, upholding both the penalty and the mandate to publicly disclose the decision.
Regulatory Commitment to Player Protection
Michel Groothuizen, chair of the KSA, emphasized the organization’s dedication to maintaining a safe gambling environment. He stressed that licensed providers must prioritize player welfare by addressing excessive gambling promptly, especially when large losses occur, as these serve as critical warning signs.
Groothuizen highlighted the regulator’s increased vigilance over online operators’ duty of care. He stated the KSA is committed to taking firm steps against those failing in their protective measures, particularly concerning vulnerable young gamblers.
Details of the Violations
During the 2023 review, the KSA examined the accounts of ten players who incurred the highest losses on BetCity. All individuals were aged between 18 and 23, each losing tens of thousands of euros over a few months. One account showed losses exceeding €63,000 (around $73,150) within a year, including €43,000 (approximately $50,000) in just one month. Another player lost €80,000 (about $93,000) in one year without any adjustments to their deposit or betting limits. The regulator found BetCity either ignored these critical risk indicators or reacted too late.
BetCity’s Response
A representative from BetCity acknowledged the KSA’s conclusions, attributing the legal issues to shortcomings under the previous ownership and management by Sports Entertainment Media. The spokesperson conveyed that since Entain’s acquisition in early 2023, significant efforts have been made to overhaul operational procedures, enhance player protection measures, and implement industry-leading responsible gambling standards.
