The Netherlands Gambling Authority (KSA) has issued a €24.8m (£21.5m) fine to illegal operator Novatech for making its platforms available to players in the country without the necessary licence.
The regulator noted the penalty payment is the “highest fine the KSA has imposed on an illegal provider to date”.
The KSA has also handed a €1.8m fine to fellow operator Fortaprime for similar violations.
Curaçao-licensed Novatech, which was previously issued with a penalty payment order by the KSA, operates the Qbet.com and 55Bet.com platforms.
As per EGM, Novatech had 820,000 hits in February across the two brands.
Costa Rica-based Fortaprime oversees the amonbet101.com, supraplay.com, amonbet.com, bilucky.com, gxspins.com, kaasino.com, hiddenjack.com and luckymax7.com websites.
A KSA investigation into both websites, which began in 2024, found that both sites marketed to Dutch players.
There were no measures in place to prevent Netherlands-based customers from creating accounts and making deposits, while a review of the sites on a third-party platform was written in Dutch and encouraged participation from Dutch players.
Upon registration, the Netherlands country code for phone numbers (+31) was listed as an option, with the country option of ‘Netherlands’ automatically filled in.
The KSA also noted “several aggravating violations”, such as the lack of visible age verification.
With regard to Fortaprime, the KSA found the websites offered the option of paying with cryptocurrency and “anonymous payment methods”, opening the door to concerns of money laundering.
Fortaprime’s offers were also advertised by Dutch influencers, which is an illegal practice per the country’s gambling laws.
The €24.8m fine for Novatech was determined in accordance with the KSA’s legal obligation to only implement a maximum fine equal to 10% of an operator’s turnover.
A KSA statement read: “The KSA can choose a turnover-related fine when imposing fines if the standard fines are disproportionate to the revenue generated from the illegal offering.
“Because the KSA estimates that both Fortaprime and Novatech have earned more from the bets of Dutch players, a higher fine based on estimated revenue has been chosen.
“The fine imposed on Novatech is the largest fine the KSA has imposed on an illegal party to date.
“However, the KSA is hampered by Dutch law in determining the amount of the fines, as the fines are disproportionate to the illegal profits these companies have made.”
KSA chair Michel Groothuizen saidthe fines could and should have been even larger.
He added: “We determine the fine based on the (estimated) turnover the illegal provider generated from players in the Netherlands. We are limited in this respect by the law, which stipulates that the fine may not exceed 10% of global turnover.
“Novatech earned hundreds of millions from its illegal offering, primarily from Dutch players. A fine of €24m sounds impressive, but without the 10% maximum, the fine would have exceeded €100m; an amount that would be more appropriate for this offence.”
So far this year, the KSA has handed a €4.2m fine to Starscream Limited for providing illegal gambling offerings to Dutch players, while ComeOn Group was hit with a €750,000 sanction.
The regulator also sanctioned bet365 in January for duty of care shortcomings.
The post KSA issues record €24m penalty to Novatech for illegal gambling operations first appeared on EGR Intel.
Dutch regulator issues “highest fine the KSA has imposed on an illegal provider to date” to Qbet parent company for operating in the Netherlands without a licence
The post KSA issues record €24m penalty to Novatech for illegal gambling operations first appeared on EGR Intel.