In a legal decision disclosed yesterday (17 December), the Netherlands’ gaming authority (Kansspelautoriteit, or KSA) announced that FBC has been operating gambling activities without a required Dutch license. It’s important to note that such games of chance are not allowed in the Netherlands.
The website Freebitco.in claims a global user base of over 54 million. It offers hi-lo jackpot content along with lottery games, allowing players to gamble using Bitcoin.
In a detailed case report, KSA explained its regulatory investigations on the website, starting in January 2023, with subsequent checks in April, June, and November of the same year.
Officers discovered that Dutch users could access the platform, register, make deposits, and engage in gambling activities. KSA highlighted that providing games of chance without a license is considered a “very serious” violation.
### Site’s Operability Despite Promises to Restrict Access
In July, KSA informed FBC of its intent to impose penalties for breaching Dutch regulations. The authorities engaged in discussions with FBC’s attorneys, giving the company a chance to cease operations before formal penalties were applied.
In a reply in August, FBC defended its free-play model, where participants could win Bitcoin without cost and claimed that efforts were made to block access for Dutch players.
Another update suggested that Dutch players were supposedly restricted from accessing gambling features, yet the site continued to operate for other purposes within the country. FBC later attributed this to “technical circumstances” that hindered the implementation of necessary measures.
A subsequent communication in September from FBC stated that immediate measures were being taken to address the compliance issue. However, due to differences within its management, the company requested additional time to enact the required changes.
KSA’s most recent check in November revealed the site still operational and accessible. As FBC did not adhere to previous rulings, the regulator signaled imminent enforcement action.
### Potential €840,000 Penalty for FBC
Although the case details emerged publicly only yesterday, the ruling was actually issued on 15 November. Consequently, KSA ordered a financial penalty against FBC.
From the ruling date, FBC was granted a four-week duration to halt operations, with this grace period ending on 13 December. Post this tenure, KSA stated that a weekly financial penalty would be enforced.
This penalty is calculated at €280,000 (£231,672/$293,897) per week, capped at €840,000.
“The Netherlands operates a regulated gambling market for enhanced player protection,” KSA asserted. “Thus, vigorous actions are undertaken against unauthorized activities. Penalty payment orders serve to swiftly terminate illegal offers, with possible fines for periods of illicit availability.”