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The Netherlands Gambling Authority has handed down legal action against 15 websites. These sites illegally advertised games of chance. All of the penalized sites will be forced to pay a fine.
15 Dutch Sites Penalized For Illegal Gambling Advertisement
The Netherlands Gambling Authority (NGA) has handed down legal action to a total of 15 websites claiming to be affiliates. These so-called affiliates were advertising games of chance on their websites. Without appropriate licensing under the Gambling Act, it is forbidden to offer games of chance.
The Netherlands Gambling Authority has launched an investigation into 22 so-called affiliate sites claiming to offer games of chance through unlicensed operators.
The Dutch online gambling market has new, more stringent guidelines for safety and security. The Netherlands Gambling Authority, or Kansspelautoriteit (KSA), takes the protection of Dutch citizens very seriously.
In order to remove the worst offenders as quickly as possible, the KSA uses the following criteria to prioritize which unlicensed operators to target first:
- Those using an .nl domain
- Any advertising through Dutch media
- Those who failed to use geoblocking technology
- Any who fail to verify the age of a player during registration
- Sites written in Dutch
During this round of inspections, the KSA opened a total of 22 investigations. Of those 22 sites, 15 were found to be in violation of Dutch online gambling laws. However, two of the 15 offenders are still under active investigation. The remaining 13 alleged affiliates have received a hefty penalty payment as punishment.
Dutch Gambling Regulators Flex Their Authority
The Netherlands has only recently opened its borders to online gambling providers. Prior to the beginning of 2021, websites for games of chance were illegal in the Netherlands. To that end, the criteria outlined above were used to target sites that allowed any Dutch players. However, now that legal forms of online gambling exist for Dutch citizens, the NGA watches carefully for violators.
Issuing these 15 penalty payment orders is intended to stop the illegal activity quickly. In some cases, it has worked as intended. A handful of the penalized affiliates have stopped advertising right away. A few others have switched to only advertising for legitimate, licensed online gambling providers.
After charging the so-called affiliates with penalty fines, the NGA will continue to watch the offenders. Once the fine has been imposed, the NGA will conduct a re-inspection of the websites in question. If all appears to be legitimate, then no further action is taken against them. However, sites that continue to violate the law will be punished further. Their penalty fine is considered forfeit, and additional legal action may be levied.
The Netherlands Gambling Authority has only issued a small number of operator licenses for the Dutch market. Any affiliates or operators who advertise to Dutch players without proper licensing are in violation of Dutch law. Providing or promoting online games of chance without a license is a punishable offense.
The Allure of Affiliate Advertising
Affiliate marketing is a popular way for sites to make some extra cash. Affiliate websites offer clickable advertisements or links to online games of chance. Every time a person clicks through to one of these sites, the affiliate gets paid.
The fees may be small, but the money adds up over time for minimal effort. In addition, some of these illegal affiliate links may have been more lucrative for the sites.
The Netherlands has a relatively small pool of legal, licensed online gambling operators. While it is possible for affiliates to make money, they are somewhat limited. This is likely why some of these disreputable sites chose to put illegal affiliate links in front of Dutch customers.
Linking out to unlicensed sites puts players at risk. In some cases, the online casinos are untrustworthy. There are many unregulated casino sites that will simply take players’ money and then disappear. Additionally, sites that are not licensed under Dutch laws could choose to take advantage of Dutch players. They would have little to no recourse in these cases because the website was operating illegally in the Dutch market.
Looking Ahead to the Future of the Netherlands’ Online Gambling Industry
As of September 2021, the Netherlands has only awarded ten online gaming licenses. All of these licensed operators have been thoroughly vetted and adhere to all Dutch gambling regulations.
The popularity of online gambling in the Netherlands means that the market will likely continue to expand. The NGA is expected to hand out more licenses in the future. This will make the market bigger and more competitive. It will also give Dutch players more options for where to spend their money.