Gaming Authority reduces mega fine for Videoslots after review

The Dutch Gaming Authority has reduced the fine for gambling company Videoslots, which originally amounted to almost €10 million, to €975,000. The fine was imposed for admitting a player from the Netherlands. This despite the fact that the online casino did not have a license for the Dutch market. The reduction of the fine comes after advice from the advisory committee for objections. Which revised the previous calculations of the turnover from the Netherlands.

Why did Videoslots receive the fine?

In March 2023, Videoslots was fined no less than €9.87 million. The reason? The company allowed a player to register via a Dutch IP address. While it did not have a license to offer gambling services in the Netherlands. At the time, this was one of the highest fines ever imposed by the Ksa on a gambling company.

According to Videoslots, the fine was unjustified. They claimed that the regulator had gained access to their website via a mystery shopper posing as a German customer, but using a Dutch IP address. Despite this situation and the measures taken to exclude players from the Netherlands, the fine was upheld.

Advice from the committee leads to a reduction of the fine

The advisory committee for objections reviewed the case. It concluded that Videoslots had taken serious steps after 31 October 2021 to no longer target the Dutch market. The number of Dutch visitors dropped significantly after October 2021. Partly because the company deleted all accounts of Dutch players.

The original fine was based on an estimate that Dutch players generated a turnover of €141 million for Videoslots. The fine of €9.87 million was determined on the basis of this turnover. However, the advisory committee discovered that the figures for 2021, which were used to determine the fine, were not fully representative.

Based on the new figures, which focused on the months of November and December 2021, the turnover from Dutch players was estimated at €8.6 million. As a result, the fine had to be recalculated, resulting in a basic fine of €600,000. After adding aggravating circumstances, such as the lack of sufficient measures to block Dutch players on the site, the total fine came to €975,000.

Responding to the reduction

The Gaming Authority followed the advice of the committee and confirmed the reduction of the fine. Marloes Derks, spokesperson for the Ksa, explained that the lower fine was due to the adjusted turnover estimate and the measures taken by Videoslots to exclude Dutch players.

“The Ksa can impose fines based on the income that a gambling company generates from players who participate from the Netherlands. In the previous fine, we used figures from 2021, partly from before the opening of the legal online market. In the objection procedure, Videoslots showed that they took measures to block Dutch players after that opening. As a result, the number of visitors from the Netherlands fell sharply. Based on these new figures, the fine has now been reduced.”

Although the fine has been reduced considerably, the case remains a clear signal that the Ksa is taking a tough approach to illegal gambling providers. For Videoslots, this means that they now suffer slightly less financial pain, but the case emphasises how important it is for gambling companies to adhere to Dutch rules.