KSA Warns Operator with Penalties Over Management Disclosure

KSA Warns Gambling Operator Over Failure to Disclose Management Changes After M&A Deal

Attention is turning to compliance as the Dutch gambling regulator, Kansspelautoriteit (KSA), takes firm action against a licensed operator. Amid increased scrutiny, the KSA has warned an unnamed operator that it could face hefty financial penalties for failing to fully disclose management changes following a recent acquisition. This move underscores the importance of transparency and adherence to regulatory standards in the Dutch gambling market.

Regulatory Compliance Under the Spotlight

The unnamed gambling operator, recently acquired by an international company, underwent a change in management as a result of the merger. In the Netherlands, licensed operators are legally required to report any such management changes to the KSA. While the operator did provide some information, it fell short of delivering all the necessary details required by Dutch law.

This lack of full disclosure prevented the KSA from conducting a comprehensive reliability assessment, which is a critical part of the regulatory framework designed to maintain the integrity of the Dutch gambling market. The KSA’s reliability test assesses whether the directors and managers of licensed operators meet stringent standards of integrity and compliance.

Penalties Looming for Non-Compliance

The KSA has given the operator a strict 20-day deadline from September 11 to provide the missing information. Failure to comply will result in a daily fine of €25,000 (£21,089/$27,530), capped at a maximum of €250,000. The fines will continue to accrue until the operator meets the KSA’s requirements in full, at which point the penalties will cease.

“KSA emphasises that the integrity of providers is a high priority,” the regulator stated. “It is the provider’s responsibility to demonstrate this reliability with the correct information. If an investigation by KSA shows that the reliability of a director is not beyond doubt, or if providers do not deliver the correct information, KSA can take enforcement action.”

Ongoing Crackdown on Rule Breakers

This latest enforcement action highlights the KSA’s ongoing commitment to maintaining a fair and transparent gambling market in the Netherlands. In recent months, the KSA has ramped up its efforts to hold operators accountable for failing to comply with Dutch gambling laws.

In August, the KSA ordered multiple operators to adhere strictly to payout rules after discovering that 13 licensed providers were not meeting their obligations. Among these, nine online operators were found obstructing payouts to customers, while four others were suspected of similar violations. Although the names of the offending operators were not disclosed, the KSA’s message was clear: non-compliance will not be tolerated.

One operator that was publicly identified for violating advertising rules is JOI Gaming, which received a stern warning from the KSA in July. The regulator found that JOI Gaming had used several “role models” in its gambling advertisements, a practice that breaches the Dutch advertising code. The KSA threatened a fine of up to €1 million if JOI Gaming continued to run these ads, which were specifically linked to the Jack’s Racing Day motorsport event.

The Wider Regulatory Landscape

KSA’s proactive stance is part of a broader effort to ensure that the Dutch gambling market operates within clearly defined boundaries. Speaking at iGB Live in July, KSA Chairman Michel Groothuizen highlighted the regulator’s concerns about illegal operators stretching the limits of what is permissible under Dutch law. His remarks underscore the challenges the KSA faces in curbing unlicensed activities and enforcing compliance among licensed entities.

The KSA’s latest action against the unnamed operator serves as a stark reminder of the importance of regulatory compliance in the highly scrutinized Dutch gambling market. As the regulator continues to tighten its grip, operators must ensure they meet all disclosure requirements, especially in the wake of mergers and acquisitions that alter management structures. The KSA’s commitment to upholding the integrity of the market is clear: non-compliance will result in substantial financial penalties and further enforcement measures, reflecting the high standards expected of all licensees in the Netherlands.