Two offshore operators have been hit with major fines by the Dutch gambling regulator, Kansspelautoriteit (KSA), over illegally targeting the domestic market.

The culprits are Fortaprime SRL and Novatech, which have allegedly provided Dutch players and unobstructed access to their platforms despite not having a licence in the Netherlands.

KSA agents were reportedly able to freely create a player account, deposit funds and play on multiple domains hosted by both offshore operators. A number of other severe breaches were noted by the regulator, such as a lack of visible age verification in place and the option to pay in crypto – a major red flag when it comes to facilitating money laundering.

Dishing out the fines, the regulator has based the amount on the turnover of both parties, adding that they would’ve been much higher if it wasn’t for the current maximum cap of 10% on turnover set within Dutch legislature. 

Fortaprime has been handed a bill for €1.8m (£1.6m), while Novatech was hit with the highest amount ever given by the KSA to an offshore operator – a total of €24.9m.

Michel Groothuizen, KSA Chairman, said: “We determine the amount of the fine based on the (estimated) turnover that the illegal provider has achieved from players from the Netherlands. 

“In doing so, we are limited by the law that says the fine may be a maximum of 10% of global turnover. Novatech earned hundreds of millions from its illegal offer, and did so mainly from Dutch players. 

“A fine of €24m sounds impressive, but without the maximum of 10% the fine would have come to more than €100m; an amount that would be better suited to this violation.”

In addition to offering games illegally, the KSA also stated that Fortaprime’s offer has been advertised by Dutch influencers, a practice completely prohibited in the Netherlands. 

The influencers could also be subjected to a financial penalty, the regulator added.

This year will be one of the most active for the KSA, with commitments being made to increase player safety and be even more heavy-handed when it comes to punishing black market operators.

The gambling authority is facing dwindling channelisation rates, lower sector turnover attributed to tax increases, and a brand new government that must deal with the rollout of a list of online gambling reforms that have been touted ever since the market was re-regulated under the KOA Act back in 2021.