KSA Imposes Record Fine on Novatech for Unlicensed Gambling Operations
Dutch Gambling Authority Takes Action Against Illegal Operators
The Kansspelautoriteit (KSA), the Dutch Gambling Authority, has recently imposed significant fines on two companies for operating gambling services without the necessary licenses. One operator faced a historic fine, although the regulator indicated that an even greater penalty would have been justified.
Fortaprime and Novatech Caught Operating Without Licenses
The KSA revealed that it has penalized Fortaprime and Novatech for offering gambling services illegally in the Netherlands. Fortaprime managed several gambling websites including amonbet101.com, supraplay.com, amonbet.com, bilucky.com, gxspins.com, kaasino.com, hiddenjack.com, and luckymax7.com. Novatech operated two platforms: Qbet.com and 55Bet.com.
Despite lacking Dutch licenses, these sites were accessible to residents in the Netherlands. Investigations showed that Dutch players were able to register accounts, deposit funds, and participate in gambling activities. Alarmingly, the platforms also appeared to lack adequate age verification mechanisms.
Furthermore, the websites accepted cryptocurrencies and other anonymous payment methods, raising concerns about potential money laundering risks.
Fines Based on Revenue Highlight Severity of Breach
Under Dutch law, the KSA may impose fines calculated on the operator’s turnover if traditional penalties do not match the scale of the illegal activities. Applying this rule, Fortaprime was fined approximately EUR 1.75 million, while Novatech received an unprecedented fine of nearly EUR 24.84 million.
KSA Chair Calls for Harsher Penalties Beyond Legal Limits
In a public statement, Michel Groothuizen, chairman of the KSA, explained that the current maximum fine is capped at 10% of a company’s global turnover, limiting how much the regulator can penalize offenders. He expressed that in Novatech’s case, the financial gains from illegal activities were so large that a fine exceeding EUR 100 million would have been more appropriate to reflect the severity of the violation.
“Novatech generated hundreds of millions from unauthorized operations targeting Dutch players. While the EUR 24 million fine is significant, without the 10% cap, the penalty could have surpassed 100 million euros, which would better match the gravity of this offense.”
Michel Groothuizen, Chairman of KSA
Continuing Crackdown on Unauthorized Gambling Platforms
The KSA has also taken steps against Polymarket, a popular prediction market operator, fining the company for offering contracts that are classified as gambling under Dutch regulations. This reinforces the KSA’s ongoing commitment to regulate and police unauthorized gambling activities within the country.
