The Netherlands Gaming Authority (Kansspelautoriteit or KSA) has announced a new general fines policy aimed at improving enforcement of gambling regulations. The new policy, effective from January 1, introduces stricter guidelines for imposing penalties and applies to all entities under the KSA’s supervision.
The general fine policy applies to all violations that the Ksa supervises. The supervisor already worked with separate fine policy rules for illegal online supply, illegal exploitation of gaming machines and for gambling terminals. These remain under the relevant policy rules, because a different fine system is used there.
The policy divides fines into five categories, with penalties ranging from €500 or $540 USD (category 1)for minor violations to €2 million or $2.16 million USD (category 5) for the most severe cases. For offences under the Money Laundering and Terrorist Financing (Prevention) Act (Wwft), fines may exceed this upper limit.
For non-Wwft violations in the highest category (category 4), the Ksa can also impose a turnover-related fine of 3% of the offender’s gross turnover, in order to increase the effectiveness of the fine.
A key feature is the introduction of turnover-related fines, where severe violations can incur penalties equivalent to 3% of the offender’s gross turnover. Benefit-related fines are also part of the system, allowing penalties to reach up to twice the financial benefit gained from the violation.
KSA has implemented a structured nine-step process to determine fine amounts. This includes evaluating the base fine, the seriousness of the offence, and the offender’s financial capacity. Repeat violations may see fines doubled, while adjustments of up to 50% are possible based on mitigating or aggravating circumstances.
Fines are also linked to operators’ gross turnover, with larger businesses facing penalties proportional to their size. In certain cases, offenders may request payment plans, but penalties will not be reduced.
KSA chairman Michel Groothuizen highlighted the policy’s intent to ensure clarity and fairness while deterring violations and said, “The Ksa is becoming increasingly professional as an organisation. After the opening of the online market in 2021, we gained a new category of license holders. In 2022, we imposed a first fine on a license holder. We have now gained enough experience to arrive at 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.”
The updated approach builds on lessons learned since the opening of the Dutch online gambling market in 2021. While existing fine systems remain for specific areas such as illegal gambling terminals and gaming machines, the new framework provides standardised measures for other violations.
The new fines policy coincides with ongoing government efforts to refine gambling legislation. Legal Protection Minister Teun Struycken has announced plans to present updated gambling policies by March 2025, addressing issues such as competition in the land-based market.
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