The Dutch gambling regulator has handed down its largest ever penalty, fining unlicensed operator Novatech €24.84 million for offering gambling services to Dutch punters without proper authorisation. The sanction follows an investigation that uncovered serious failings around player protection and anti-money laundering controls.

The Kansspelautoriteit (KSA) announced enforcement action against two operators this week. Fortaprime received a €1.75 million penalty for running eight websites including amonbet.com, supraplay.com and luckymax7.com without a Dutch licence. But it’s Novatech that’s taken the real battering, with the regulator calculating the fine based on turnover from Qbet.com and 55Bet.com.

Regulator Calls Out Legal Limits on Penalties

KSA chair Michel Groothuizen didn’t hold back in his assessment. The regulator chose turnover-based fines rather than standard penalties precisely because of the scale of the operations.

Dutch law caps such fines at 10% of global turnover, but Groothuizen reckons Novatech got off lightly.

“Novatech earned hundreds of millions from its illegal offering, primarily from Dutch players,” he said. “A fine of 24 million sounds impressive, but without the 10% maximum, the fine would have exceeded 100 million euros, an amount that would be more appropriate for this offence.”

That’s a striking admission. The regulator essentially saying its hands are tied by legislation, even when dealing with operators pulling in that kind of revenue. For context, €24.84 million works out to roughly €28.9 million at current exchange rates, comfortably beating any previous KSA enforcement action.

Multiple Red Flags Uncovered

The investigation revealed problems beyond just operating without a licence. KSA officials created test accounts on the websites in question, made deposits and placed bets without encountering proper age verification systems.

That’s a fundamental consumer protection failure.

Both operators accepted cryptocurrency and other anonymous payment methods, raising obvious money laundering concerns. For a regulated market like the Netherlands, which brought in licensing requirements specifically to tackle these issues, that’s about as blatant as it gets.

The timing is notable too. The KSA recently fined prediction markets platform Polymarket for similar reasons, making clear that event contracts fall under gambling regulation in Dutch law. The regulator is clearly ramping up enforcement against offshore operators, particularly those offering services that blur traditional gambling categories.

For punters, the message is straightforward enough. Stick to licensed operators if you want proper consumer protections. For operators eyeing the Dutch market, these fines show the KSA means business, even if Groothuizen wishes he could hit harder.