Dutch lawmakers propose KSA fines up to 100% of operator revenue

Lawmakers in the Netherlands have introduced a proposal that could significantly expand the enforcement powers of the country’s gambling regulator. The initiative would allow the national regulator, Kansspelautoriteit, commonly known as the KSA, to impose financial penalties of up to 100 percent of a gambling operator’s annual revenue under certain circumstances.

The proposal emerged after the regulator expressed concerns about limitations in the current legal framework. Those concerns became particularly visible following a record fine imposed on the operator Novatech. While the fine itself was substantial, officials indicated that existing legislation restricts the regulator’s ability to ensure penalties fully reflect the financial scale of illegal gambling operations.

Supporters of the proposal argue that stronger enforcement tools could improve regulatory oversight and strengthen consumer protections. At the same time, observers note that collecting penalties from offshore operators remains a complex issue even when regulators have expanded authority.

Proposal seeks to expand financial penalties

Under current Dutch law, the KSA can impose fines that are linked to the estimated turnover generated by an illegal gambling service. However, the amount is capped at 10 percent of an operator’s annual revenue.

Regulators have indicated that this cap may limit the effectiveness of enforcement actions. In cases where operators generate large profits through unlicensed gambling services, a capped penalty could represent only a fraction of the financial gains.

The new proposal would allow the regulator to increase fines significantly in serious cases. If approved, the maximum penalty could reach up to 100 percent of the operator’s annual revenue. Proponents believe such a change would create a stronger deterrent against unlicensed operators targeting Dutch consumers.

According to policymakers involved in the initiative, the goal is to align penalties more closely with the economic scale of violations. By doing so, the regulator could ensure that sanctions reflect the financial benefits that illegal operators may obtain from the market.

Record fine against Novatech sparks debate

Discussion about expanding enforcement powers gained momentum after the KSA imposed a record penalty on Novatech. The regulator issued a fine totaling €24 million after determining that the company had been offering gambling services to Dutch consumers without the necessary authorization.

Despite the record amount, regulators noted that current rules still limit their ability to impose higher penalties when circumstances justify stronger enforcement. The regulator has publicly stated that the 10 percent revenue cap may prevent penalties from matching the scale of profits generated through unlicensed activity.

Regulatory officials have suggested that more flexible enforcement powers would allow authorities to respond proportionately to violations. The proposal introduced by lawmakers reflects these concerns.

However, enforcing such penalties against operators based outside the Netherlands can present practical challenges. After the KSA ruling, Novatech reportedly relinquished its license in Curaçao. This development could complicate efforts to pursue financial penalties or regulatory measures.

In addition, authorities in Sweden issued a prohibition order against the operator during the same period, highlighting how multiple jurisdictions may take action when unlicensed services target local consumers.

Opposition lawmakers push for broader reforms

The proposal to strengthen financial penalties was introduced by political leaders from opposition parties. Mirjam Bikker, leader of the ChristenUnie party and Sarah Dobbe of the Socialist Party jointly presented the motion.

Beyond the expansion of regulatory fines, the initiative also calls for additional changes aimed at strengthening player protection. These include restrictions on gambling advertising and adjustments to the national self exclusion system.

Supporters of the proposal argue that stronger measures are needed to address the growing visibility of online gambling services. They have expressed concern about the accessibility of digital gambling platforms and the potential risks for vulnerable groups.

Bikker emphasized these concerns in public remarks, stating: “Slot machines are now literally in your pocket and you see gambling ads everywhere in the high street. It’s time for a complete advertising ban.”

Her comments reflect a broader debate in the Netherlands about the balance between a regulated gambling market and the need for stronger safeguards for players.

Advertising restrictions remain a key policy debate

The Netherlands has already introduced several restrictions on gambling marketing in recent years. In July 2023 authorities implemented a ban on targeted advertising for online gambling platforms.

The policy was intended to limit marketing messages aimed at vulnerable audiences. Officials also sought to reduce exposure to gambling promotions among younger individuals.

Additional restrictions were introduced in 2024 when a ban on sports sponsorship by gambling operators took effect. This measure aimed to reduce the visibility of gambling brands in sports competitions and related media coverage.

Despite these steps, some lawmakers believe further restrictions are necessary. The new proposal supports a comprehensive ban on gambling advertising across the country.

The current minority government has already introduced a similar proposal. If implemented, the policy would represent one of the most restrictive advertising frameworks for gambling in Europe.

Concerns about player protection and youth participation

Another element of the proposal focuses on strengthening the national self exclusion program known as Cruks. This system allows individuals to voluntarily block access to licensed gambling platforms in the Netherlands.

At present, the minimum exclusion period under the program is six months. Lawmakers behind the proposal have suggested extending the minimum duration to one year.

Supporters argue that a longer exclusion period could provide individuals with more time to address problematic gambling behavior. Public policy experts often view self exclusion tools as an important element of responsible gambling frameworks.

The debate has also been influenced by statistics related to the Dutch online gambling market. Since the regulation of the market in 2021 approximately 450,000 new players have registered accounts with licensed platforms.

Data cited by lawmakers indicates that young adults between the ages of 18 and 21 now represent about 22 percent of active accounts. These figures have prompted renewed discussions about whether additional protections are needed for younger participants.

Regulatory reforms face political complexity

Efforts to revise Dutch gambling legislation have been under discussion for several years. The government previously indicated that a broader overhaul of gambling policy would take place.

One proposal under consideration involved raising the legal age for participating in online slot games from 18 to 21. Supporters believe such a change could reduce the exposure of younger players to higher risk forms of gambling.

However, broader regulatory reforms have faced political challenges. In August, Teun Struycken resigned from his role as State Secretary for Legal Protection. His resignation occurred amid wider political disagreements related to international policy issues.

The development delayed progress on gambling legislation that had been expected earlier. Political negotiations following the country’s early election in October further complicated the timeline for regulatory changes.

The current governing coalition includes the centrist party Democrats 66, the Christian Democratic Appeal and the People's Party for Freedom and Democracy. As no party secured a majority in the election, policymaking now requires cooperation across multiple parties.

Industry response raises concerns about market impact

Industry groups have also participated in the discussion surrounding proposed reforms. The Dutch trade association VNLOK has expressed caution regarding the possibility of a complete ban on gambling advertising.

According to the association, strict advertising restrictions could unintentionally encourage players to seek gambling services outside the regulated market. Licensed operators rely on advertising to inform consumers about legal platforms that follow national regulations.

If marketing channels disappear entirely, some experts warn that unlicensed websites may become more difficult for consumers to distinguish from regulated services.

Supporters of stronger advertising rules argue that player protection must remain the priority. Critics emphasize the need to maintain a competitive and visible legal market to reduce the appeal of unregulated operators.

These differing perspectives illustrate the complex policy choices facing Dutch lawmakers.

Conclusion

The proposal to expand the enforcement powers of the Kansspelautoriteit marks an important development in the Netherlands’ ongoing discussion about gambling regulation. By potentially allowing fines of up to 100 percent of an operator’s annual revenue, lawmakers aim to provide regulators with stronger tools to address unlicensed gambling activity.

At the same time, the broader reform package reflects a wider effort to strengthen consumer protection measures. Proposals related to advertising restrictions, self exclusion programs and youth participation highlight growing concern about the social impact of online gambling.

While the objectives of these reforms are widely discussed, their practical implementation will depend on political negotiations and legislative approval. Enforcement against offshore operators remains a challenge even when regulatory powers are expanded.

As policymakers continue to debate the future of the Dutch gambling framework, the outcome will likely shape how the regulated market evolves in the coming years. Balancing effective consumer protection with the sustainability of the legal market will remain a central issue for regulators, lawmakers and industry participants alike.

FAQs

What change has been proposed regarding fines for gambling operators in the Netherlands?
Lawmakers have proposed allowing the Kansspelautoriteit to impose fines of up to 100 percent of an operator’s annual revenue in serious cases of illegal gambling activity.

Why do regulators want higher financial penalties?
Regulators believe the current 10 percent revenue cap may not fully reflect the profits generated by unlicensed operators and may limit the effectiveness of enforcement actions.

Which company recently received a record fine from the Dutch regulator?
The operator Novatech received a record fine of €24 million from the Kansspelautoriteit for offering gambling services without proper authorization.

What is the Cruks system in the Netherlands?
Cruks is the national self exclusion system that allows individuals to block themselves from accessing licensed gambling platforms.

What change has been proposed for the Cruks exclusion period?
Lawmakers have suggested extending the minimum exclusion period from six months to one year to strengthen player protection.

Why are gambling advertisements being debated in the Netherlands?
Some lawmakers believe that widespread advertising increases exposure to gambling, particularly among younger audiences and have proposed a complete advertising ban.

What advertising restrictions already exist in the Netherlands?
The country introduced a ban on targeted gambling advertisements in 2023 and later implemented restrictions on sports sponsorship by gambling companies.

How many new players entered the Dutch online gambling market after regulation?
Approximately 450,000 new players joined the regulated online gambling market after it launched in 2021.

Why is enforcement against offshore operators challenging?
Offshore operators may operate under foreign licenses or jurisdictions which can limit the ability of national regulators to collect fines or enforce penalties.

What concern has the gambling industry raised about advertising bans?
Industry representatives have warned that a total ban on gambling advertising could encourage players to use unregulated platforms instead of licensed services.