Dutch Gambling Regulator Fines Chestoption €3.1m For Illegal Operations

The Netherlands Gambling Authority (KSA) has imposed a €3.1 million fine on Costa Rica-based operator Chestoption Sociedad de Responsibilidad Limitada for offering online gambling services to Dutch consumers without a licence.

According to the regulator, players in the Netherlands were able to register accounts, deposit funds and access casino games through three websites operated by the company. The sites identified by the KSA were Vave.com, Vave-luck.com and 67evav55.com.

In its ruling, the regulator concluded that the websites were at least partially directed at the Dutch market. This was evidenced by Dutch-language affiliate content promoting the brands, betting markets on the Eredivisie football competition and the absence of effective measures to prevent access for Dutch residents.

The KSA said these elements show that the operator had actively targeted or facilitated gambling activity from consumers in the Netherlands.

Consumer Protection Failures Increased Size Of Financial Penalty

The regulator identified several aggravating factors during its investigation. According to the KSA, the websites did not display visible age verification checks, despite consumer protection requirements in the Dutch market.

Investigators also found autoplay features available on the platforms, which are prohibited under Dutch gambling regulations. The regulator further noted that the operator accepted cryptocurrency payments.

The KSA also raised concerns about withdrawal conditions for customers. Players could be required to wager deposited funds multiple times before becoming eligible to withdraw balances. 

In addition, certain terms restricted customers from freely accessing their funds. According to the regulator, these conditions encouraged gambling before completing withdrawals and increased consumer risk.

Previous Enforcement Failed To Stop Dutch Market Access

This latest fine follows earlier enforcement action against Chestoption last December. The KSA ordered the company to stop offering gambling services in the Netherlands. However, subsequent inspections found that the websites remained accessible to Dutch consumers.

As a result, the regulator previously imposed penalty payments totalling €840,000. Chestoption has six weeks from the date of notification to challenge the latest decision. The fine notice was formally issued on 9 June. 

“Taking action against illegal offerings is not limited to administrative fines but also involves intensive cooperation with third parties, such as payment service providers, hosting parties, banks, and major tech companies,” the KSA said in notes accompanying the ruling.

Separate Promotional Lottery Investigation Results In New Sanctions

In a separate enforcement action, the KSA has also issued a penalty payment order against an unnamed company for organising illegal promotional lotteries. Dutch law permits promotional prize draws under certain conditions, including free participation and limiting such promotions to once annually.

Kansspelautoriteit stated that it received multiple reports concerning a business regularly raffling cars to customers who spend above a minimum amount. After initially informing this company of the relevant rules, the KSA found that the promotional lotteries continued.

The defaulting brand faces penalties of €150,000 for each future violation, up to a maximum of €450,000, unless it stops the illegal activities immediately.

Expert Opinion

The KSA has fined Costa Rica-based operator Chestoption for breaching its regulations by offering gambling services to Dutch players. This owed to several factors, such as age verification checks, autoplay features, and withdrawal conditions. The company was fined up to €840,000 last December for prior infringements.