The Dutch Gambling Authority, Kansspelautoriteit (KSA), Imposes Record €19.6m Fine on Gammix Limited for Unlicensed Game Offering
In June 2022, Gammix received an ultimatum to exit the Dutch market or face weekly fines totaling €1.4m. By the following March, the Kansspelautoriteit (KSA) demanded Gammix pay €4.4m for non-compliance with the cessation order in the Netherlands.
This latest penalty stems from these prior directives, as the KSA observed Gammix’s failure to prevent Dutch players from accessing its platforms.
In its recent ruling, the KSA asserted that Gammix persists in offering illicit online gambling services through various websites catering to Dutch players, such as rantcasino.com, betoriginal.com, and nordslot.com. The investigation conducted in March 2023 specifically targeted rantcasino.com and nordslot.com.
The KSA’s latest fine decision details its ongoing monitoring of Gammix’s websites throughout 2022, comprising initial probes and subsequent inspections, which revealed continued accessibility to Dutch users.
Upon sending its findings to Gammix, the KSA received a response in May 2023, contesting the basis for imposing sanctions.
Gammix’s Estimated Dutch Revenue Reaches €302.7m
According to the KSA, the websites remained accessible through Dutch internet service providers (ISPs) and consistently accepted registrations from the Netherlands. This was supported by the presence of the +31 Dutch area code on the sites and the absence of any prohibition against Dutch users.
Despite Gammix dismissing the KSA’s report as “careless” and hastily compiled, the KSA proceeded with the fine. It determined that Gammix, as an operator, should have been well-informed about Dutch regulations concerning online gambling and the potential enforcement actions by the KSA.
Additionally, the KSA identified several aggravating factors that contributed to the fine, including failure to take action and lack of age verification measures.
Ultimately, Gammix’s €19.6m penalty amounted to 6.5% of its estimated revenue from the Dutch market, calculated at €302.7m
Gammix Counters with Strong Opposition to “Outrageous and Unsubstantiated” Fine
In response to the fine’s announcement on March 1st, Gammix affirmed its intention to challenge the KSA’s decision. Phil Pearson, the director of Gammix Limited, denounced the fine as “outrageous and unsubstantiated” and pledged to vigorously contest it.
Pearson stated, “The KSA has levied a penalty against our company that we find both outrageous and lacking in evidence. Now that we can openly discuss the case, we confirm our determination to fight on all fronts. This action appears exceedingly heavy-handed and unwarranted from a regulatory body that many have already perceived as unyielding.
Pearson asserted that Gammix had notified the KSA of implemented blocks and had requested additional information, which, according to Pearson, went unanswered.
In a press release issued earlier today, Gammix contended that accounts accessing its platforms during the investigation were established in Luxembourg, with credit card deposits.
Furthermore, Gammix emphasized that such actions contravene the platforms’ terms and conditions, particularly regarding the provision of inaccurate information during registration.
The operator also maintained that the fine was determined using data from a proprietary web traffic aggregation service and a €240 per click multiplier. Gammix argues that this methodology inflates turnover figures beyond reality.
When we initially received notification of a potential penalty, we promptly informed them about the existing blocks,” Pearson emphasized. “We also requested any pertinent information they possessed regarding the investigation to ensure our continued adherence to all regulatory guidelines. Unfortunately, it seems our request was disregarded.
“Our legal representatives also formally contacted the regulatory body in writing, seeking clarification, yet regrettably, no response was received.”
“Criticism Mounts Against “Mystery Shopper” Investigation Method”
The KSA’s use of the “mystery shopper” investigative approach has sparked controversy in the past, notably when operator Videoslots received a €9.87m penalty in March 2023.
Videoslots immediately declared its intent to contest the decision, accusing the regulator of exploiting the mystery shopping method.
Videoslots disclosed that in preparation for a KSA application in April 2022, the regulator’s logo was inadvertently visible on its website for a brief period before being promptly removed.
Upon discovering the error, Videoslots asserted that the regulator attempted to register as a Dutch customer but was unsuccessful due to the implemented safeguards.
It was reported that the KSA gained unauthorized entry by posing as a German customer, successfully making a deposit and placing a single bet of 20 cents.
Upon discovering that a KSA official had unlawfully accessed its platform, Videoslots promptly implemented additional security measures to prevent future occurrences.
Nevertheless, the KSA asserted that Videoslots violated the Dutch Gaming Act by allowing access, leading to the imposition of the fine. Despite the operator’s denial of the accusation, it confirmed its intention to contest the decision.