Unregulated Online Gambling Wreaks Havoc: Netherlands Gaming Authority Imposes Hefty Fines
Regulatory authority in the Netherlands imposes substantial penalty on Mr Green.
In an unexpected turn of events, popular online gaming company, now known as Mr Green, has found itself under the Netherlands Gaming Authority's (NGA) radar. Mr Green, operating through its Malta-based subsidiary, Mr Green Ltd., has been hit with a €312,500 fine for catering to Dutch clients without obtaining the necessary permit.
The NGA expressed their displeasure over Mr Green's actions in a press release, highlighting the gaming operator's shortcomings in adhering to the Dutch regulations. The fine was handed out shortly after competitor, gaming operator Betsson, received a similar penalty of €300,000.
According to Mr Green, its subsidiary had followed the guidelines for providing online gambling services as presented by the local regulator, Kansspelautoriteit, with one caveat. The company had not implemented IP blocking for Dutch clients, leading to the hefty fine.
The NGA had imposed the fine on July 17, 2018, but the amount was kept under wraps as Mr Green chose to challenge the decision in court. A recent court ruling resulted in the release of the fine amount, prompting Mr Green to express its intention to appeal.
The subsidiary of Malta-based Betsson also found itself on the wrong side of the NGA, receiving a €300,000 fine for targeting local players without a license. The affected company, Corona Ltd., owns and operates the Oranje Casino and Kroon Casino brands, and, like Mr Green, it has announced its intention to appeal the fine.
The NGA has taken a firm stance against unregulated gambling operators in the past, imposing fines on various companies, including German gambling operator bet-at-home for €400,000 this year. However, the NGA is still struggling to enforce the Dutch gambling legislation, which leaves the regulatory body with limited power.
It's important to note that the Dutch market is undergoing a process of restructuring. Though progress has been slow, there's a possibility that operators previously fined by the NGA may not receive licenses from the Kansspelautoriteit once they become available. This issue has been a hot topic in parliament, with both supporters and opponents weighing in on its potential impact on players.
Insights and Challenges
- Licensing Requirements: Companies operating in the Netherlands must acquire a license from the Kansspelautoriteit to legally provide online gambling services.
- IP Blocking: Although not legally mandated, operators may need to implement measures to prevent Dutch players from accessing unlicensed platforms.
- Regulatory Compliance: Foreign companies must abide by Dutch regulations, including licensing and advertising restrictions, to avoid hefty fines.
- Market Competition and Channelisation: The Dutch market hosts a significant illegal segment, making it challenging for legal operators to compete and attract players from unlicensed sites.
- What was the fine imposed on Mr Green by the Netherlands Gaming Authority (NGA) for catering to Dutch clients without a permit? - €312,500
- Which other gaming operator, similar to Mr Green, received a similar fine from the NGA for targeting local players without a license? - Corona Ltd. (operating Oranje Casino and Kroon Casino brands)
- The Dutch market is currently undergoing a process of restructuring, and operators previously fined by the NGA may not receive licenses from the Kansspelautoriteit once they become available. - True
- In addition to issues with licensing and fines, what other challenge do legal operators face in the Dutch market due to the presence of a significant illegal segment? - Competition and channelization: attracting players from unlicensed sites.
