The Netherlands Gaming Authority (KSA) has introduced a new general fine policy aimed at improving clarity, consistency, and effectiveness in enforcing gambling regulations.

Effective from 1 January, the policy establishes stricter guidelines for imposing fines on gambling providers and other supervised entities.

The fine structure is divided into five categories, with standard fines ranging from €500 in the lowest category to €2m in the highest.

For severe violations, the policy establishes a turnover-related fine of 3% of the offender’s gross turnover, “in order to increase the effectiveness of the fine.”

Violations linked to the Money Laundering and Terrorist Financing (Prevention) Act (Wwft) in Category 5 may face even higher penalties.

The KSA’s policy also features benefit-related fines, which are calculated based on the financial benefit gained from the violation, with fines potentially reaching twice the obtained benefit.

Determining fine amounts

Fines are determined using a structured step-by-step plan, which takes into account the basic fine amount, recidivism where fines may double for repeat offences, as well as the seriousness of the violation by evaluating its impact and scope.

It also takes into account the culpability of the offender, assessed by their level of responsibility, as well as their financial capacity and size, where larger operators may face higher fines proportionate to their turnover.

Fines can be adjusted by up to 50% based on the severity of the violation, culpability, and any mitigating circumstances. Final amounts are rounded according to predefined rules.

“The KSA is becoming increasingly professional as an organisation,” said the regulator’s chair Michel Groothuizen.

Since the online gambling market opened in 2021, the regulator has “gained enough experience to arrive at a well-considered fine policy for both licence holders and other parties,” he added.

“This creates clarity for the parties under our supervision and hopefully motivates them even more to avoid fines.”

While existing fine systems remain for specific sectors such as illegal online gambling, gaming machines, and gambling terminals, the new framework introduces a standardised approach for other violations.

Factors like gross turnover, recidivism, and the seriousness of violations are consistently applied.

The KSA hopes the new policy will enhance regulatory oversight, deter violations, and promote fair play within the gambling sector.

In the past, the industry has frequently questioned the KSA’s approach to fining operators, citing concerns over consistency and fairness.

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