The Netherlands’ Gaming Regulator Updates Rules For Issuing Fines

The Dutch Gaming Authority, Kansspelautoriteit (KSA), has announced updates to its fine policy, which will take effect on January 1, 2025. This revised framework aims to offer more clarity and transparency for gambling operators and other entities under the authority’s supervision.

The policy, published in the Government Gazette, applies to violations outlined in the Netherlands’ Remote Gambling Act and the Money Laundering and Terrorist Financing (Prevention) Act (Wwft).

New fine categories:

• Category 1: €0–€500 (US$0–US$520), base fine €500 ($520)

• Category 2: €0–€10,000 (US$0–US$10,400), base fine €10,000 ($10,400)

• Category 3: €0–€200,000 (US$0–US$208,000), base fine €100,000 ($104,000)

• Category 4: €0–€1 million (US$0–US$1.04 million), base fine €500,000 ($520,000)

• Category 5 (Wwft only): €0–€4 million (US$0–US$4.16 million), base fine €2 million ($2.08 million)

For non-Wwft violations in category 4, the KSA may add a turnover-based fine of 3% of the offender’s gross revenue to ensure penalties remain impactful.

Nine-step process for calculating fines:

• Determining the base fine and whether it’s a repeat offense (doubling possible)

• Evaluating seriousness: duration, consequences, and integrity risks

• Assessing culpability (adjustment up to ±50%)

• Considering offender’s or group’s gross turnover

• Applying reductions for voluntary reporting or corrective actions (up to 25%)

• Reviewing related violations to ensure appropriate penalties

• Preventing fines from being lower than illicit profits

• Accounting for financial capacity to keep fines proportionate

Context and objectives:

• First fines for licensed operators were imposed in 2022

• Updated policy reflects KSA’s experience since the market launch in 2021

• Designed to provide clarity and encourage compliance

Michel Groothuizen, Chair of the KSA board, emphasized that this updated framework reflects the regulator’s commitment to fairness, transparency, and proportional enforcement.

By formalizing these guidelines, the KSA aims to ensure fair play in the gambling industry and strengthen trust in the Dutch regulatory system.