The Dutch gambling regulator Kansspelautoriteit (KSA) has imposed its largest financial penalty to date on the operator Novatech for offering online gambling services to players in the Netherlands without a license. Authorities determined that the company ran several websites that allowed Dutch users to sign up and gamble despite lacking permission to operate in the country.

The regulator issued a fine totaling €24.846 million against Novatech, which operates the gambling sites Qbet.com and 55Bet.com. Investigators found that people in the Netherlands could register accounts, deposit funds, and take part in gambling activities on these platforms.

At the time of the investigation, the KSA reported that no technical restrictions prevented players in the Netherlands from accessing the sites. Officials also identified several serious compliance failures linked to consumer protection and anti-money laundering rules.

Compliance Failures and Access for Dutch Players

During its review, the KSA confirmed that its staff members were able to create player accounts on the investigated platforms, make deposits, and participate in gambling. This indicated that the operators had not implemented sufficient controls to stop Dutch residents from using the services.

Regulators noted several factors that increased the severity of the violations. The sites lacked visible age-verification systems and allowed users to pay using cryptocurrency and anonymous payment methods. Authorities warned that such options could create opportunities for money laundering.

Affiliate websites reviewing some of the brands also indicated that they accepted players from the Netherlands. The KSA viewed these references as a sign that the operators were actively targeting Dutch customers.

In addition to the record sanction against Novatech, the KSA issued another fine of €1.795 million to Fortaprime SRL. That company operates several brands, including amonbet101.com, supraplay.com, amonbet.com, bilucky.com, gxspins.com, kaasino.com, hiddenjack.com, and luckymax7.com. Investigators concluded that Dutch residents could access these sites as well, even though the operator did not hold a Dutch gambling license.

Authorities also pointed out that Fortaprime’s platforms had been promoted by Dutch influencers, adding that individuals who advertise illegal gambling services may face sanctions themselves.

Legal Limits on Penalties Draw Criticism

The regulator based the size of the fines partly on estimated revenue earned from players in the Netherlands. The KSA said both companies likely generated significant income from Dutch users, prompting the authority to impose higher penalties linked to those estimated earnings.

However, Dutch law places a limit on financial sanctions by capping fines at 10% of an operator’s global turnover. According to the KSA, this restriction prevented an even larger penalty in the Novatech case.

KSA chairman Michel Groothuizen addressed the limitation when discussing the decision. He said: “We determine the fine based on the (estimated) turnover the illegal provider generated from players in the Netherlands. Novatech earned hundreds of millions from its illegal offering, primarily from Dutch players. A fine of €24m sounds impressive, but without the 10% maximum, the fine would have exceeded €100m; an amount that would be more appropriate for this offence.”

Enforcement in the Regulated Market

The Netherlands launched a regulated online gambling market in 2021 with the goal of improving player protection and bringing gambling activity into a supervised environment. Since then, authorities have introduced several measures to strengthen oversight, including tighter advertising rules and mandatory deposit limits.

Despite these changes, regulators say a small number of unlicensed platforms continue to attract a substantial share of online gambling spending in the country.

To address illegal operators, the KSA uses several enforcement tools beyond administrative fines. The authority said it cooperates with payment providers, hosting companies, banks, and technology firms to restrict unlicensed gambling services and reduce their reach.

The regulator has also taken action in other cases involving unauthorized gambling operations. In February, prediction market operator Polymarket received a fine of up to €840,000 for operating in the Netherlands without the required license.