**In February 2023, KSA rejected an application from a provider for a license to access the Dutch regulated market.** The identity of the gambling provider in question has not been revealed.
KSA stated it turned down the license application due to concerns over a former shareholder in the provider. The regulator discovered the issue while conducting standard integrity tests on all applicants.
The shareholder in question was suspected of involvement in the murder of an investigative journalist who was examining a major corruption scandal in Malta.
Although the shareholder was no longer linked with the provider, KSA requested more information as part of its approval process. However, the regulator found the information supplied to be “incorrect and evasive or incomplete,” leading to the refusal of the application.
## Appeal filed over gambling license rejection
The provider disagreed with this reasoning and filed a case with the court of appeal in the Netherlands. In its response, it confirmed the shareholder severed all ties with the provider in November 2021 after selling off their shares.
The unnamed provider also detailed how, upon becoming aware of the allegations against the shareholder, it took steps to buy them out of their shares. It also noted clearance from the National Bibob Agency, a Dutch agency that investigates the integrity of potential business partners.
Additionally, the provider emphasized its support for the formation of new online gambling laws in the Netherlands. This included contributing to the introduction of the Cruks self-exclusion scheme and sponsoring the Betblocker online gambling blocking tool.
## Court sides with KSA
The case was heard last week in the Hague District Court. The decision to side with KSA was reached on 20 February but was only made public yesterday (26 February).
Explaining its reasoning, the court stated that as the provider supplied incorrect or incomplete information, this was sufficient to conclude that the reliability of the company was not beyond doubt. Consequently, KSA was within its rights to refuse the license application.
KSA welcomed the ruling, saying if there is any doubt over an applicant, it is its responsibility to reject the application.
“Carrying out integrity tests is an important part of the supervision by the KSA,” the regulator stated. “Ensuring the integrity of providers has a high priority and it is the responsibility of the provider to demonstrate this reliability with the correct information.”
“If an investigation by KSA shows that the reliability of a director is not beyond doubt, or if providers do not provide the correct information, KSA can take enforcement action or refuse a requested permit.”
Despite the Hague District Court ruling, the provider may still lodge another appeal.
The Hague District Court has ruled in favor of Kansspelautoriteit (KSA) in a dispute over the Dutch gambling regulator’s decision to refuse a license to a Malta-based online gambling provider.