KSA “Too Limited” to Fight Illegal Online Gambling

The de Kansspelautoriteit (KSA), which regulates Dutch gaming, was the subject of a report commissioned by the government. The report said KSA was “too limited” to effectively combat illegal online gaming. Operators say the KSA should do more to limit offshore operators.

KSA “Too Limited” to Fight Illegal Online Gambling

A report commissioned by the government of the Netherlands on the gaming regulator de Kansspelautoriteit (KSA) concludes that it is “too limited” to fight illegal online gambling, but doesn’t go so far as to recommend beefing up its resources.

The report was done by the consultant Kwink Groep and included the period from 2017 to 2021, the time leading up to the launch of the online gaming market in the Netherlands. KSA committed much of its resources to fighting the illegal market but came under criticism for not doing enough to prevent unlicensed operators from operating in the country.

The report said, “The KSA’s enforcement actions focused on illegal online offerings,” adding, “Nevertheless, market parties and various government organizations believe that combating illegal supply still receives too little attention from the KSA.”

The prevailing view is that operators in Malta and Curaçao, among others, are still able to operate illegally to Dutch consumers. They suggest that the KSA use payment and website blocking more often.

The report said, “They believe that the KSA could and can do more about this, for example by urging telecom parties to shut down illegal websites or payment service providers not to provide payment services to illegal providers.” It continued, “With the entry into force of the Koa Remote Gambling Act, the provision of payment services to online offerings without a license is explicitly prohibited and the KSA can take enforcement action against this.”

The operators quoted in the report complained that they pay high taxes but receive little in return from the KSA. The agency, for its part, admits that its resources were too limited to effectively enforce the law.

The report proposed some tools for KSA to use that it says it is already doing. KSA stated, “The KSA is already working concretely on strengthening risk-based supervision.” It added, “The first results of this are visible, but the ambition of the KSA goes further. For example, a KSA-wide structure is being set up to continuously identify, qualify and prioritize risks.”

KSA Chairman Rene Jansen commented, “The evaluation gives the KSA good recommendations on how it can improve its effectiveness and efficiency. They fit in particularly well with the professionalization that the organization has already started.”