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KSA Imposes Record Fine of €19.6m on Gammix

KSA Imposes Record Fine of €19.6m on Gammix

Fines, Legal

The Netherlands' gambling regulatory authority, Kansspelautoriteit (KSA), has levied its highest-ever fine of €19.6 million (£16.8 million/$21.2 million) against Gammix Limited for operating games without a license.


KSA's Stringent Enforcement


In June 2022, Gammix received an ultimatum to exit the Dutch market or face weekly fines of €1.4 million. Despite this warning, the KSA imposed a €4.4 million penalty on Gammix in March 2023 for failing to comply with the directive.


The recent fine of €19.6 million is a culmination of Gammix's persistent non-compliance, as it continued to offer illegal online gambling services to Dutch players on various websites like Rantcasino.com, Betoriginal.com, and Nordslot.com.


Fine Details and Response


The KSA's investigation revealed that Gammix's sites remained accessible to Dutch players, accepting registrations and failing to implement necessary prohibitions. Despite Gammix's objections, citing the lack of a basis for sanctions, the KSA proceeded with the penalty.


This substantial fine constitutes approximately 6.5% of Gammix's estimated Dutch turnover, totaling €302.7 million. In response, Gammix labeled the fine as "outrageous and unsubstantiated" and vowed to contest it vigorously.


Controversy Over Investigation Methods


The KSA's investigative approach, known as the "mystery shopper" method, has faced criticism previously. This technique involves regulators posing as ordinary customers to assess compliance.


Similar controversies emerged in the case of Videoslots, where the KSA allegedly gained unauthorized access by disguising as a German customer. Despite objections and accusations of regulatory overreach, the KSA maintained its stance, underscoring the rigor of its enforcement efforts.


Gammix's challenge against the KSA's penalty underscores the ongoing tension between operators and regulators in navigating the intricacies of compliance within evolving regulatory frameworks.

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