The Dutch gambling authority, Kansspelautoriteit (KSA), has delivered a historic blow to the unlicensed market by issuing a €24.8 million penalty to Novatech. This fine represents the highest financial sanction ever imposed by the regulator, targeting the operator of the 55bet and Qbet brands for providing illegal gambling services to Dutch citizens.
The “10 Per Cent” Constraint
KSA Chairman Michel Groothuizen revealed that while the fine is substantial, it would have been significantly higher if not for statutory limitations. Under current Dutch law, penalties for gambling entities are capped at 10 per cent of their global turnover.
Groothuizen stated:
“A fine of €24m sounds impressive, but without the 10 per cent maximum, the fine would have exceeded €100m; an amount that would be more appropriate for this offense.”
The chairman noted that Novatech has generated “hundreds of millions” in revenue from the Netherlands without contributing a single cent in national tax revenue.
Aggravating Violations and Money Laundering Risks
During the investigation, KSA officials were able to easily create accounts and deposit funds from within the Netherlands, proving that no technical barriers were in place to prevent local participation. Beyond the lack of a license, the regulator cited several “aggravating violations”:
- Age Verification: No visible measures were in place to prevent minors from gambling.
- Cryptocurrency: The acceptance of anonymous payment methods and crypto was flagged as a major risk for facilitating money laundering.
Novatech is currently registered in Curaçao, holding a license from the Curaçao Gaming Control Board. In a related move, the KSA also issued a €1.8m fine to Fortaprime, the operator behind Supraplay and Hidden Jack Casino.
