NetX was recently hit with a hefty €675,000 fine by the Netherlands Gambling Authority (KSA) for engaging in unlawful gambling operations in the nation. The KSA’s continued dedication to upholding gaming laws and guaranteeing consumer protection is reflected in this fine. Notably, Winbet was facing a possible €840,000 fine for selling unlicensed items on many platforms, such as Galaxyspins.com and Winnercasino1.bet, just before this amount was imposed.
Background of the Investigation
The case against NetX began in December 2022 when the KSA first launched an investigation into the operator. They discovered that Dutch players were able to access gambling services through the Pferdewetten.de website, which is primarily focused on horse racing and trotting. The KSA classifies these activities as games of chance, which require appropriate licensing in the Netherlands. Although the site claimed to be licensed in Malta, it failed to meet Dutch regulatory standards.
Following a follow-up investigation in April 2023, the KSA found that Dutch players could still access the site without any implemented restrictions. Additionally, the operator had not taken adequate technical measures to block access from users in the Netherlands. Consequently, the KSA issued an order for NetX to cease all operations in the country. In September, the operator complied by shutting down the website. However, upon further review, KSA discovered that players could still create accounts and gamble on the same site.
The KSA’s investigations revealed that NetX was also operating another gambling site, Betbird.com, which offered similar services to Dutch consumers. During a hearing earlier this year, NetX presented documentation to defend its actions, arguing that horse betting should not be classified similarly to casino games. They claimed to have implemented measures to block Dutch users from accessing their site, blaming an IP blocking error for continued access.
Despite these claims, the KSA upheld its findings of illegal activity, asserting that NetX had violated Dutch laws. The KSA also criticized the operator’s policy of imposing a €5 monthly penalty for inactivity after 13 months. While NetX argued that this was standard practice in the industry, the KSA disagreed and decided to proceed with the fine.
In summary, the total fine for NetX amounts to €675,000, with €600,000 attributed to operating without a license and €75,000 related to the inactivity policy. This case highlights the KSA’s rigorous approach to regulating online gambling and ensuring compliance with local laws.
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