The Netherlands Gambling Authority (KSA) has issued a €1.1m fine to Blue High House (BHH) for offering gambling without a licence to operate in the Dutch market.
A KSA investigation into the website Betonline.ag, which is owned by BHH, determined that Dutch players were able to participate in online gambling, with no preventative measures taken to prevent Dutch-based bettors from betting.
The investigation dates back to December 2021 and lasted until June 2023, though a re-inspection was conducted in August of last year.
It discovered that the site was still accessible from a Dutch IP address and it was possible for Dutch players to participate in games of chance, while the Netherlands was listed as an option on the site throughout the registration process.
In September 2023, the KSA issued a penalty payment order to BHH, as well as a cease-and-desist order, but the operator did not respond.
Four months later, the Dutch regulator filed a report based on its findings and determined that BHH had breached regulations be operating without a licence.
BHH did not issue any response to the report, despite being invited to do so by the KSA in February.
Over the course of the investigation, the KSA uncovered a number of breaches, such as the offering of prohibited games, autoplay and turboplay, no playing limits in place, a lack of age verification process and a use of unauthorised payment methods
As a result, the KSA’s fine, handed out on 5 November, is larger than the basic amount of €600,000, which usually comes into effect if the company in question has shown that its annual turnover is less than €15m.
The fine included a €150,000 charge for offering prohibited games, while separate €75,000 charges relating to autoplay, lack of playing limits, lack of age verification, and banned payment methods, including crypto, were included.
KSA chair Michel Groothuizen addressed the fine issued to BHH, reaffirming the need for “tough action” to be taken.
“The Netherlands has a legal market to ensure that people who want to gamble can do so safely. With illegal providers, such as in this case, we often see that risky gaming behavior is not taken into account in any way,” mich explained.
“For example, players can create an account on this website without having to verify their age, which means that minors can also play.
“We also saw things like autoplay and turboplay, which can encourage excessive gaming, and there were no gaming limits. The Ksa takes tough action against these types of illegal websites.”
The KSA has ordered several penalty payments in recent months, while last week the Dutch minister responsible for gambling Teun Struycken conceded “much remains to be done” to improve the protection of players within the nation’s regulated market.
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