Dutch Gambling Authority Imposes €3M Fine on BetCity for AML and Terrorist Financing Violations

In a landmark enforcement action, the Dutch gambling regulator, Kansspelautoriteit (KSA), has levied a massive €3 million fine against the well-known operator BetCity.

This fine, one of the largest in the sector’s history, arises from significant breaches in anti-money laundering (AML) and terrorist financing regulations, highlighting the KSA’s unwavering commitment to maintaining integrity within the gambling industry.

Picture a gambling environment where transparency and legal compliance are non-negotiable standards, ensuring a safe and responsible gaming experience for all. This decisive action by the KSA moves the industry closer to this ideal, setting a precedent for rigorous regulatory adherence.

Stay informed about this critical development that not only impacts BetCity but also signals a broader shift in regulatory expectations for the gambling sector in the Netherlands and beyond.

KSA’s Stern Message: €3M Fine for BetCity Marks a New Era in Gambling Regulation

In a significant move underscoring the seriousness of regulatory compliance, the Dutch gambling authority Kansspelautoriteit (KSA) has imposed a hefty €3 million fine on BetCity, an online gaming and sports betting operator in Holland, now part of the London-listed Entain group. This decision marks a pivotal moment in the Dutch gambling landscape.

Background of the Violations

The KSA first flagged issues with BetCity in September 2022, identifying lapses in their protocols against anti-money laundering and terrorist financing. A startling example was a player who lost a staggering €110,000 in just one month, with BetCity failing to investigate the source of these funds adequately.

Despite being directed to rectify these issues, KSA’s subsequent investigations from December 2022 to May 2023 revealed persistent shortcomings. BetCity was found to have delayed investigations following significant monetary losses by customers, exhibited laxity in requesting income sources, and at times, failed to report unusual transactions.

KSA Chairman’s Stance on Compliance

KSA chairman René Jansen emphasized that the era of leniency is over, stating that the market is now beyond its start-up phase and that “there are no more excuses for some things.” This statement underscores the regulator’s heightened expectations for compliance in the industry.

Entain’s Response and Future Plans

Entain acknowledged the issues, which originated before its acquisition of BetCity in January of the current year. Aware of the KSA’s September 2022 order, Entain has initiated improvements to BetCity’s procedures and control frameworks, demonstrating a proactive approach to compliance.

Leadership Changes at KSA

In a related announcement, the KSA disclosed that René Jansen will not seek another term as the regulator’s chairman after his current term concludes on October 1, 2024. Jansen, who has played a pivotal role in the Netherlands’ regulated online gambling market since its inception in October 2021, will step down on July 1, 2024. His leadership has been marked by significant regulatory strides, including his contributions as chair and vice-chair of the Gambling Regulators European Forum.

Implications and Future of Gambling Regulation

This enforcement action by the KSA serves as a stark reminder to all operators in the gambling sector of the critical importance of adhering to AML and anti-terrorist financing regulations. It sets a new benchmark for compliance in the industry, reinforcing the need for robust internal controls and vigilant monitoring practices. As the industry continues to evolve, this case will likely be a reference point for future regulatory actions, both in the Netherlands and internationally.