Dutch regulator issues penalties to operators LCS and Blue High House, LCS hits back saying it is "unjustified"

The Dutch gambling regulator, the Kansspelautoriteit (KSA), has issued penalties for operators LCS Limited and Blue High House, as they continued to offer online gambling in the country despite not holding relevant licenses.

The regulator says it previously reached out to both LCS and Blue High House about the issue, but noted they continued to illegally offer online gaming without approval. In response, the authority has ordered them to pay separate penalties of €165,000 ($177,308) and €129,000 ($139,736), respectively, and added that it could take further action over the matter.

“An order subject to a penalty is more than a warning to an illegal provider,” KSA chairman René Jansen said. “Illegal providers who do not take the right measures to ban Dutch players will be dealt with harshly by the KSA and will feel this where it affects them most – in their wallets.”

LCS was previously issued with a €165,000 penalty in 2022 for offering gambling without a license, in connection with the Sonsofslots.com site, and was sent a cease and desist order.

The KSA said an inspection in October 2023 found LCS offering unlicensed gaming via a different site, yugibet.com. In response, the KSA is ordering LCS to pay a new fine of €165,000.

Meanwhile, Blue High House has been fined €129,000 in relation to the site Websitebetline.ag. The KSA said a further fine may be issued if it fails to cease taking Dutch players.

LCS hits back at KSA's penalty calling it unjustified

Blenheim, the legal firm representing LCS in the case with the KSA, has responded to the fines, according to iGB. Through a statement, LCS said that it wished to make clear that it has not re-entered the Dutch market. LCS also called the decision by KSA to issue a penalty “unjustified," the same term it used to refer to the October fine.  

“Let there be no misunderstanding: we take our obligations under Dutch law seriously,” LCS said. “The recovery decision is unjust in view of the facts. LCS has taken various technical measures to deny or impede access to players from the Netherlands. 

“It is inimitable for KSA to claim LCS has not taken technical measures and has breached the order or has violated any laws or regulations, while the KSA is trying to participate in gambling on the website by using a VPN and false data.”

LCS referred to how the KSA previously confirmed it has ceased all operations in the Netherlands and that the charge has been complied with. This, the company adds, has been the case since 14 September 2022, when the KSA issued a statement on the matter.

“In this regard, KSA’s own confirmation is self-evident proof of our compliance,” LCS said. “The recovery of alleged forfeited penalty payments can be seen as more unreasonable. It is a violation of the protection of the legitimate expectations of any reasonable entity. It is paramount to clear up any confusion created by recent media reports. "

“We wish to make it explicitly clear LCS has not re-entered the Dutch market in any capacity. We dispute this unjustified recovery and remain fully committed to compliance and fairness in our operations.”