KSA fines Novatech €24.8M for illegal online gambling in Netherlands

The Dutch Gambling Authority, Kansspelautoriteit (KSA) has imposed a record administrative fine of €24.846 million on offshore gambling operator Novatech for offering online gambling services to players in the Netherlands without a licence. The regulator concluded that the operator allowed Dutch users to create accounts, deposit funds and participate in gambling activities through its platforms despite the absence of authorization to operate in the Dutch regulated market.

The penalty represents the largest fine ever issued by the KSA against an unlicensed gambling operator. The decision follows an investigation by the regulator which determined that several gambling websites linked to Novatech were accessible to users located in the Netherlands and did not implement measures designed to prevent participation by Dutch players.

In the same enforcement action the authority also imposed a fine of €1.795 million on Fortaprime, another operator found to have offered similar services to Dutch customers without proper licensing.

The case highlights the continued efforts of the Dutch regulator to address offshore gambling activity that targets domestic consumers outside the country’s regulated system.

Dutch regulator intensifies action against illegal operators

The Netherlands established a regulated online gambling market under the Remote Gambling Act which requires operators to obtain a licence from the KSA before offering services to players located in the country. The regulatory framework is intended to protect consumers, prevent fraud and limit risks associated with problem gambling and financial crime.

Operators that provide services to Dutch residents without a licence may face administrative penalties, enforcement orders and other regulatory actions.

In the investigation leading to the sanctions the KSA examined a number of gambling websites associated with Novatech and Fortaprime. Regulators concluded that the platforms allowed players from the Netherlands to register accounts, make deposits and participate in gambling games without encountering restrictions designed to block access from the country.

According to the regulator such circumstances indicate that the services were effectively available to Dutch consumers even though the operators did not hold a licence issued by the KSA.

Record fine imposed on Novatech

The largest penalty in the case was imposed on Novatech, which was fined €24.846 million. The regulator described the amount as the highest fine it has issued to date in connection with illegal online gambling activity targeting Dutch players.

Administrative penalties in the Netherlands may be calculated using several methods depending on the circumstances of the violation. When standard fine levels are considered insufficient in relation to the scale of the alleged activity the authority may estimate the revenue generated by the operator and calculate the penalty accordingly.

The KSA stated that this approach was used in the Novatech case after investigators concluded that the revenues generated from Dutch players were likely significantly higher than what standard penalty levels would normally address.

The regulator emphasized that under Dutch administrative law fines may not exceed 10 percent of the global annual turnover of a company.

KSA Chair Michel Groothuizen commented on the calculation of the penalty:

“The fine amount is determined based on the estimated turnover that the illegal operator generated from players in the Netherlands. At the same time, we are limited by legislation which states that the fine may not exceed 10 percent of the global turnover.

Novatech earned hundreds of millions from its illegal offering, mainly from Dutch players. A fine of €24 million may sound impressive, but without this 10 percent cap the penalty would have exceeded €100 million.”

The statement reflects the regulator’s view that the illegal gambling activity generated substantial revenue while highlighting the legal limitations that apply when determining administrative penalties.

Fortaprime also receives regulatory sanction

In addition to the record fine imposed on Novatech the regulator also issued a penalty of €1.795 million to Fortaprime.

The authority determined that several websites associated with Fortaprime allowed players in the Netherlands to participate in gambling activities despite the absence of authorization from the KSA.

Domains identified by the regulator in connection with Fortaprime included amonbet101.com, supraplay.com, amonbet.com, bilucky.com, gxspins.com, kaasino.com, hiddenjack.com and luckymax7.com.

Websites linked to Novatech included Qbet.com and 55Bet.com.

According to the KSA investigation the platforms provided access to gambling games and payment functionality that enabled Dutch users to participate without encountering technical barriers or geo-blocking measures.

Websites remained accessible to Dutch players

During the regulatory investigation KSA inspectors were reportedly able to create user accounts on the identified platforms and proceed through the registration process using a Dutch location.

Authorities indicated that they were able to deposit funds and participate in gambling activities on the websites without encountering restrictions intended to prevent participation from the Netherlands.

The regulator concluded that the absence of geo-blocking tools or other protective measures indicated that the services were accessible to players within the Dutch jurisdiction.

Such findings formed part of the evidence supporting the administrative sanctions issued against the operators.

Additional factors considered by the regulator

The KSA also identified several elements that it considered aggravating circumstances during the investigation.

According to the regulator the websites examined during the inquiry did not present clear age verification mechanisms visible to users. The authority stated that the absence of such safeguards could raise concerns regarding the protection of minors.

The investigation also noted the availability of payment methods including cryptocurrencies and other anonymous transaction tools. Regulators stated that such methods may present challenges for oversight and may increase the risk of financial crime if not properly supervised.

Authorities did not make specific allegations beyond the regulatory concerns identified but indicated that these factors contributed to the overall assessment of the violations.

Promotion through influencers raises further concerns

In the case involving Fortaprime the KSA also noted that certain promotional activity connected to the operator appeared to involve social media influencers who targeted audiences in the Netherlands.

The regulator stated that advertising unlicensed gambling services to Dutch consumers may violate national regulations governing gambling promotion.

While the enforcement action primarily targeted the operators the authority indicated that individuals involved in the promotion of illegal gambling platforms may also face regulatory scrutiny depending on the circumstances.

Such warnings form part of broader regulatory efforts aimed at reducing the visibility and reach of unlicensed gambling operators within the Dutch market.

Enforcement strategy extends beyond fines

The KSA emphasized that administrative fines represent only one component of its enforcement strategy against illegal gambling operators.

The regulator stated that it also works closely with payment providers, banks, internet hosting companies and major technology platforms to disrupt the infrastructure that supports unlicensed gambling services.

By coordinating with these partners authorities seek to restrict financial transactions connected to illegal operators and reduce their ability to reach potential customers in the Netherlands.

The regulator has previously issued enforcement orders to both Novatech and Fortaprime which required them to cease offering gambling services to Dutch players. Such orders may include periodic penalty payments if operators fail to comply with regulatory instructions.

These measures reflect a wider regulatory approach aimed at protecting the integrity of the licensed market.

Protecting the regulated Dutch gambling market

The Netherlands introduced a regulated online gambling market with the goal of channeling players toward licensed operators that follow national rules on consumer protection, responsible gambling and financial oversight.

Regulators argue that unlicensed offshore operators undermine these protections because they operate outside the national regulatory framework.

By taking enforcement action against operators that target Dutch players without authorization the KSA aims to reinforce the integrity of the legal market and ensure that licensed companies operate on a level playing field.

Authorities have repeatedly stated that protecting players and preventing illegal gambling activities remain central priorities within the country’s regulatory agenda.

Conclusion

The record fine issued to Novatech illustrates the growing determination of the Dutch Gambling Authority Kansspelautoriteit to address offshore gambling platforms that make their services available to Dutch players without a licence. By applying a turnover based methodology the regulator sought to ensure that the penalty reflects the scale of the alleged activity while remaining within the limits established by Dutch law.

The simultaneous sanction imposed on Fortaprime demonstrates that enforcement efforts extend beyond a single operator and target a broader ecosystem of unlicensed gambling platforms. Investigations found that several websites linked to the companies were accessible to players in the Netherlands and did not include technical safeguards intended to block participation from the country.

At the same time the regulator has emphasized that enforcement involves more than financial penalties. Cooperation with banks payment providers hosting companies and technology platforms forms part of a wider strategy designed to limit the reach of illegal operators and support the licensed gambling market.

As the Dutch online gambling sector continues to evolve regulatory authorities are expected to maintain a strong focus on compliance and consumer protection. Actions such as the record Novatech fine indicate that operators targeting Dutch players without authorization may face substantial penalties if regulators determine that their activities fall within the jurisdiction of national gambling laws.

FAQs

What is the Kansspelautoriteit and what does it regulate?
The Kansspelautoriteit is the Dutch Gambling Authority responsible for regulating gambling activities in the Netherlands and issuing licences to approved operators.

Why was Novatech fined by the Dutch regulator?
Novatech was fined because regulators determined that its websites allowed Dutch players to access gambling services without holding a licence issued by the Dutch Gambling Authority.

How large was the fine imposed on Novatech?
The administrative fine issued to Novatech was €24.846 million which is the largest fine imposed by the Dutch regulator for illegal online gambling activity.

Was any other operator fined in the same case?
Yes Fortaprime received a separate administrative penalty of €1.795 million after regulators found that its websites were also accessible to players in the Netherlands without authorization.

How did the regulator determine the amount of the fine?
The Dutch Gambling Authority used a turnover based calculation which estimates revenue generated from Dutch players when standard penalties are considered insufficient.

Is there a legal limit on administrative fines in the Netherlands?
Yes under Dutch law administrative fines cannot exceed 10 percent of the company’s global annual turnover.

What websites were linked to the investigation?
Domains associated with the case included Qbet.com and 55Bet.com linked to Novatech as well as several sites connected to Fortaprime such as amonbet.com and supraplay.com.

What concerns did regulators raise about payment methods?
Authorities noted that some platforms offered cryptocurrencies and anonymous payment options which can complicate oversight and raise potential regulatory concerns.

Can influencers face consequences for promoting illegal gambling platforms?
The regulator indicated that individuals who promote unlicensed gambling services to Dutch audiences may face regulatory scrutiny depending on the circumstances.

What is the goal of enforcement actions like these?
Regulatory actions aim to protect players support licensed operators and ensure that gambling services offered in the Netherlands comply with national laws.