Netherlands Unveils New Fine System for Gambling Violations
The Netherlands Gambling Authority Kansspelautoriteit (KSA) has unveiled a new fine policy, effective January 1, 2025, aimed at promoting transparency and clarity in regulatory enforcement within the Dutch online gambling sector.
LISTEN TO THIS ARTICLE:The Netherlands Gambling Authority Kansspelautoriteit (KSA) has unveiled a new fine policy, effective January 1, 2025, aimed at promoting transparency and clarity in regulatory enforcement within the Dutch online gambling sector.
The new 'General Policy of Fines' covers specific breaches of the Remote Gambling Act (KOA) and the Netherlands Money Laundering and Terrorist Financing (Prevention) Act (Wwft).
Under the new policy, violations are categorized into five distinct tiers, with basic fines ranging from €500 ($516) to €2 million.
The highest level of fines, classified as Category 5, will be imposed solely for violations of the Wwft.
In cases of Category 4 non-Wwft violations, the KSA may impose a turnover-based fine, equivalent to 3% of the offender's gross turnover, ensuring that penalties effectively reflect the severity of the infringement.
The KSA is becoming increasingly professional as an organization. After the opening of the online market in 2021, we gained a new category of license 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. This creates clarity for the parties under our supervision and hopefully motivates them even more to avoid fines.
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The KSA’s Fine Calculation Process
The KSA will provide a detailed, step-by-step breakdown for each fine imposed to promote transparency and openness.
The KSA's first step (Step 1) in calculating a fine involves categorizing the violation into one of the predetermined categories based on the severity and type of infraction. In Step 2, the KSA assesses whether the license holder has previously committed the same violation, potentially doubling the fine as a penalty for recidivism.
Step 3 involves the KSA evaluating the severity of the violation, taking into account its impact on customer care, instances of negligence, and any system failures that may have occurred.
In Step 4, the authority will assess the license holder's level of culpability. If the KSA finds evidence of negligence, the fines could be increased by 50%.
Step 5 involves adjusting the fine based on the offender's gross turnover, with the possibility of considering consolidated turnover for entities within larger corporate groups.
Step 6 allows license holders to present mitigating circumstances, potentially reducing fines by up to 25%. Additionally, the KSA reviews multiple fines for related violations to ensure the overall penalty remains proportionate.
The final stages of the framework (Steps 7-9) focus on ensuring fines effectively equal any financial gains derived from the violation. However, in Step 8, the KSA considers the offender's financial capacity to prevent undue hardship, offering relief options through potential fine reductions or customized payment arrangements.
By prioritizing proportionality, transparency, and prevention, the fine calculation process strikes a balance between deterring future violations and treating offenders fairly, regardless of their financial situation.
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