The Dutch gambling regulator, the Kansspelautoriteit (KSA), has imposed financial penalties on LCS and Blue High House for continuing to operate online games of chance without authorization. Despite previous warnings, both operators persisted in offering these services, prompting the KSA to take decisive action.
LCS has been ordered to pay a penalty of €165,000, while Blue High House faces a fine of €129,000. KSA Chairman René Jansen emphasized the seriousness of the situation: “An order subject to a penalty is more than a warning to an illegal provider. Illegal providers who do not take the right measures to ban Dutch players will be dealt with harshly by the KSA and will feel this where it affects them most – in their wallets.”
Ongoing Violations by LCS
The conflict between KSA and LCS dates back to August 2022 when KSA initially fined LCS €165,000 for unlicensed gambling operations. LCS challenged the ruling but was later hit with a substantial €2.1 million fine for continued violations. KSA found that LCS had been offering online games to Dutch players through its Sonsofslots.com website. Despite legal challenges from LCS, a re-inspection in October 2023 revealed that the operator was still breaching regulations via Yugibet.com, leading to an additional €165,000 penalty.
LCS, represented by legal firm Blenheim, responded by denying any recent violations and labeling the penalties as “unjustified.” LCS stated, “We take our obligations under Dutch law seriously. The recovery decision is unjust in view of the facts. LCS has taken various technical measures to deny or impede access to players from the Netherlands.”
Similarly, Blue High House received a cease-and-desist order in October 2022 after KSA found it operating without a license through Websitebetline.ag. Despite warnings and the threat of escalating weekly fines, the operator did not comply. Consequently, KSA issued a €129,000 penalty. The KSA has indicated that further fines could be imposed if compliance is not achieved.
LCS maintains that it has not re-entered the Dutch market and criticizes the KSA’s enforcement actions. The company argued that the fines were based on flawed methodologies and inaccurate data. “The recovery of alleged forfeited penalty payments can be seen as more unreasonable. It is a violation of the protection of the legitimate expectations of any reasonable entity,” LCS asserted.
LCS emphasized its commitment to compliance, stating, “We wish to make it explicitly clear LCS has not re-entered the Dutch market in any capacity. We dispute this unjustified recovery and remain fully committed to compliance and fairness in our operations.”
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