Dutch gambling regulator announces new fine policy effective 2025

The Netherlands Gambling Authority (Kansspelautoriteit, KSA) enforced a new "General Policy of Fines" starting January 1, 2025, aiming to strengthen compliance and deter violations in the Dutch gambling industry. The updated framework introduces broader penalties, turnover-related fines, and a transparent calculation process.  
 
The fine policy encompasses violations under the Remote Gambling Act (KOA) and the Netherlands Money Laundering and Terrorist Financing (Prevention) Act (Wwft). It categorizes fines into five levels, ranging from €500 ($514) for minor breaches (Category 1) to €2 million ($2.05 million) for severe violations (Category 5), the latter specifically addressing Wwft-related offenses.  

Non-Wwft violations in Category 4 may face fines up to 3% of the offender’s gross turnover, emphasizing proportionality for larger operators. The maximum penalty across all categories can reach €4 million.  

The KSA introduced a detailed nine-step process to ensure clarity:

•Step 1: Assign a fine category based on the violation.
•Step 2: Double fines for repeat offenses.
•Step 3: Adjust penalties for the seriousness of the breach, including negligence and customer impact.
•Step 4: Increase penalties by 50% for culpability.
•Step 5: Scale fines based on gross turnover, including consolidated revenue for corporate groups.
•Step 6: Consider mitigating factors such as voluntary reporting or corrective actions, allowing reductions up to 25%.
•Steps 7-9: Ensure proportionality and fairness, preventing offenders from profiting while accommodating financial capacity.

The policy includes a step-by-step breakdown of fine calculations, offering licensees a clear understanding of the penalties. The KSA emphasized its dual objectives of deterrence and fairness, targeting compliance across operators of varying financial scales.  

“The New General Policy of Fines aims to ensure penalties are appropriate and serve as punitive and preventive measures. It seeks to deter violations and promote compliance with gambling regulations,” the KSA stated.  

The policy builds on lessons learned since the country’s online gambling market opened in 2021. In 2022, the KSA imposed its first fine on a gambling licensee, marking a turning point in regulatory enforcement.  

KSA Chairman Michel Groothuizen highlighted the regulator’s evolution, saying: “We have now gained enough experience to create a well-considered fine policy for both license holders and other parties. This creates clarity for the parties under our supervision and hopefully motivates them even more to avoid fines.”