The Netherlands Gaming Authority (Kansspelautoriteit, KSA) has rolled out a new general fine policy, effective January 1, 2025, aimed at improving the enforcement of gambling regulations. This updated policy sets a standardized structure for penalties across the industry, ensuring greater clarity and consistency for license holders and other regulated entities.
The fine structure divides violations into five categories. Basic fines range from €500 for minor infractions in Category 1 to €2 million for severe offenses under Category 5. Violations involving the Money Laundering and Terrorist Financing (Prevention) Act (Wwft) fall exclusively under the highest category. Additionally, non-Wwft violations in Category 4 may incur turnover-related fines of 3% of the offender’s gross revenue, reinforcing the deterrent impact of penalties.
KSA Chairman Michel Groothuizen explained in a press release that “the KSA is becoming increasingly professional as an organisation. After the opening of the online market in 2021, we gained a new category of licence holders. In 2022, we imposed our first fine on a license holder. We have now gained enough experience to create a well-considered fine policy for both license holders and other parties.”
Step-by-Step Process for Determining Fines
The KSA’s policy employs a detailed step-by-step approach to ensure penalties are both transparent and proportional:
- Classification of Violations: The process begins by categorizing the offense based on its severity.
- Adjustments for Repeat Offenses: Fines may double for repeat violators.
- Impact Assessment: The regulator evaluates the seriousness of the violation, considering factors like customer harm and operational negligence.
- Culpability Analysis: Offender responsibility is reviewed, with penalties increasing by 50% for gross negligence.
- Turnover-Linked Fines: For larger entities, penalties are scaled based on gross turnover, with corporate groups assessed on consolidated figures.
- Mitigating Factors: Circumstances such as self-reporting or corrective measures can reduce fines by up to 25%.
The additional steps 7 through 9 focus on ensuring proportionality, fairness, and financial feasibility. The KSA aims to prevent penalties from causing undue financial hardship while ensuring they exceed any financial gains obtained from the violation.
Clearer Guidelines for Operators
The updated framework aims to eliminate ambiguities in previous policies. While existing sector-specific rules for illegal online gambling and gaming terminals remain in effect, the new general policy standardizes fines across other areas of the gambling industry.
Groothuizen expressed hope that the policy would motivate operators to comply with regulations. “This creates clarity for the parties under our supervision and hopefully motivates them even more to avoid fines,” he stated. By introducing this comprehensive structure, the KSA strives to enhance regulatory oversight and ensure a fairer, more transparent gambling sector in the Netherlands.
