KSA fines BetOnline operator €1.1m for unlicensed gambling operations

The Netherlands Gambling Authority (KSA) has imposed a fine of €1.12m on Blue High House S.A., the company behind BetOnline.ag, for offering online games of chance without the required licence.

A regulatory investigation revealed that BetOnline.ag allowed Dutch players to participate in online gambling without implementing measures to prevent their access. This included the absence of tools to block Dutch players and ensure compliance with local gambling laws.

KSA chairman Michel Groothuizen (pictured) highlighted that the legal framework in the Netherlands aims to offer a safe and controlled environment for those who wish to gamble.

Unlicensed operators, he said, undermine these efforts by disregarding safety measures and increasing the risks associated with gambling.

Among the issues noted was a lack of safeguards against risky gambling behaviours. Players were allowed to create accounts without undergoing age verification, exposing minors to gambling.

Additionally, features such as autoplay and turboplay were available, which are thought to encourage excessive gambling. There were also no mechanisms to set limits on spending or playing time, increasing the potential for gambling harm.

Not the first time

Blue High House had previously been warned and fined for similar violations involving the same gaming platform. Despite a fine in October of last year, the company continued to allow access to BetOnline.ag in the Netherlands.

The KSA, which uses Cloudfare to monitor the gaming market, warned at the time that Blue High House would be handed a penalty of €43,000 per week, up to a maximum of €129,000. Those violations and the others identified during the most recent investigation contributed to the more substantial fine.

Although Blue High House has reportedly ceased offering BetOnline.ag to Dutch players since then, the KSA remains vigilant. It said it will monitor the company closely to ensure compliance and prevent re-entry into the Dutch market through alternative platforms.

Should the company breach regulations again, the authority is prepared to impose further penalties, it added.

A drop in interest

The regulated Dutch iGaming market, launched in 2021, is undergoing significant regulatory changes to further tighten controls and protect consumers.

Recent developments include stricter requirements for deposit limits and real-time player monitoring, as well as a ban on untargeted advertising introduced in July 2023.

Operators are also facing potential restrictions on online slots, a move that could significantly impact the industry.

Additionally, a steep increase in taxes on gross gaming revenue will come into effect over the next two years. From 1 January 2025, the rate will rise from 30.5% to 34.2%, and then to 37.8% in 2026.

The tax hikes have faced criticism from industry groups, including the Netherlands Online Gaming Association. It argues that higher costs could drive players toward unregulated markets.

Two companies have already exited the market amid the increased strain. Flutter withdrew Tombola, one of the first iGaming platforms to launch in the Dutch market, in October. LiveScore Bet exited the market earlier this month.

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