Dutch KSA Hits Chestoption Crypto Casino with Weekly Penalty

The Dutch Gaming Authority (Kansspelautoriteit, KSA) has taken firm action against Chestoption Sociedad de Responsibilidad Limitada, a crypto-focused casino operator, ordering it to immediately cease its illegal gambling services in the Netherlands or face steep weekly fines.

Chestoption runs several crypto gambling websites, including vave.com, vave-luck.com, and 65avev55.com. Despite lacking a Dutch license, these sites allowed local players to create accounts, deposit crypto, and access games. According to the KSA’s investigation, the operator failed to implement basic geo-blocking measures or exclude Dutch users — clear violations under Dutch gambling law.

Even more troubling, while some location blocking seems active today, the sites still provide instructions on using VPNs and proxy services to bypass geographic restrictions, undermining regulatory protections.

The KSA’s order threatens penalties of €280,000 ($318,000) per week, capped at €840,000, if Chestoption does not comply. This case underscores the KSA’s growing focus on unlicensed operators, especially those using cryptocurrencies, which often operate outside traditional regulatory frameworks.

Chestoption previously held a Curaçao license but has since lost it and now claims to operate under Costa Rican law — a jurisdiction without proper iGaming licensing or regulatory oversight. This makes the operation effectively unregulated, leaving players with little recourse for complaints or disputes.

For the Dutch market, the KSA’s action sends a strong message: crypto casinos must play by the rules or face escalating legal and financial consequences.

Unlicensed crypto operators should immediately reassess their Dutch market activities and implement robust compliance measures. Players, too, must verify the licensing status of crypto gambling sites before engaging to ensure they’re protected under proper regulatory frameworks.

KSA Cracks Down: Chestoption Crypto Casino Faces €280,000 Weekly Penalty

Key Points

• Heavy Penalties Imposed: Chestoption faces €280,000 per week in fines, up to €840,000, if it continues operating.
• Crypto Gambling Violations: Chestoption’s crypto sites lack Dutch licensing and fail to block Dutch players effectively.
• Jurisdictional Concerns: Operating under Costa Rican law offers no meaningful gambling regulation or player protections.

Inside the KSA’s Battle Against Unlicensed Crypto Gambling

The KSA’s recent penalty order against Chestoption Sociedad de Responsibilidad Limitada shines a light on the growing regulatory challenge posed by crypto gambling platforms. While innovation in payment methods has revolutionized the gambling space, it has also introduced new loopholes exploited by offshore operators.

Chestoption’s operations, centered on crypto-based platforms like vave.com, were accessible to Dutch players despite the operator holding no Dutch license. The KSA’s investigation found no meaningful geo-blocking, no country exclusion lists, and active encouragement to bypass restrictions using VPNs.

This is not merely a technical issue — it’s a legal one. Dutch law requires all gambling operators to be licensed by the KSA to serve local players, ensuring consumer protections, responsible gambling measures, and fair dispute resolution.

Although Chestoption previously operated under a Curaçao license, that license was recently revoked following management changes. Now operating under Costa Rican registration, the company falls outside any recognized gambling regulatory framework. Costa Rica only requires a general data processing license and provides no dedicated gambling oversight, making it an “unregulated” jurisdiction in the eyes of most global watchdogs.

The KSA’s penalty — €280,000 per week, capped at €840,000 — reflects the seriousness of the violation and the regulator’s determination to protect Dutch players from unlicensed, unregulated platforms. Notably, this is part of a broader crackdown, as the KSA has increasingly targeted offshore operators, particularly those in the fast-evolving crypto sector.

Gambling Insider also points out that even when site access is blocked, instructions on using VPNs can undermine regulatory controls. This emphasizes the importance of not just technical compliance but also ethical operational practices.

The KSA’s action against Chestoption serves as a stark warning to crypto gambling operators worldwide: regulatory oversight is tightening, and national authorities are prepared to impose heavy financial penalties to safeguard consumers. For Chestoption, the clock is ticking to withdraw from the Dutch market or face mounting fines. For players, this case underscores the importance of choosing licensed, regulated platforms to ensure fair play and adequate protections.