Dutch regulator KSA issues landmark fine for duty of care failings

The Kansspelautoriteit (KSA) has issued a landmark €734,000 ($833,248) fine to an operator for failing to protect young adults from gambling harm and excessive losses. 

The Dutch gambling regulator launched an investigation into a license holder over player protection concerns, with the findings revealing a lack of responsible gambling measures. 

As part of the probe, the KSA reviewed 10 customer files in the company’s system, which all related to bettors aged between 18 and 23. 

Violations were found in all 10 cases, contributing to “tens of thousands of Euros in losses”, including losses accrued over a very short time without adequate intervention measures.

The KSA would usually name the operator under the spotlight, but has been prevented this time around, due to the entity requesting an interim injunction. 

As part of the legal action, the regulator has been instructed not to name the operator until explicitly told otherwise, but if the breach of Dutch regulations is upheld by the court, a further announcement naming the perpetrator is expected. 

Dutch gambling law states that licensed operators are expected to protect players from “excessive gambling behavior and addiction,” but it appears this duty of care has not been carried out. 

This sentiment was echoed by KSA board chairman, Michel Groothuizen. 

He said, “We have a licensed gambling market based on the idea that anyone who wants to gamble can do so safely. That is why providers have a duty of care towards their players and must respond adequately to excessive play.”

The senior official continued, “Major losses are an important signal of this. We have intensified our supervision of the online duty of care, and we take tough action against violations such as those we find here, because we really do not want to see providers continue to fail in their duty of care, especially for vulnerable young players.”

Dutch Legal Secretary Teun Struycken is also keen to crack down on problem gambling factors, particularly those affecting young people. 

He is backing key reforms to install the highest safe play standards, including mandatory deposit limits, increasing the minimum age for “high-risk online games” to 21, and increasing the remit and powers of the KSA.

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