The Kansspelautoriteit (KSA), the Dutch gambling regulator, has dropped a record €24.9 million penalty on Novatech, the company behind online brands Qbet and 55Bet. The sanction marks the latest chapter in the Netherlands’ increasingly tense relationship with its gambling industry, which is seeing players drift toward unlicensed operators following a series of heavy-handed restrictions.

The regulator announced the fine on Tuesday, accusing Novatech of actively targeting Dutch players despite operating without a valid local licence. The same day, the KSA also slapped Fortaprime with a €1.8 million penalty for running several unlicensed online casinos accessible to Netherlands residents.

Active Targeting of Dutch Players

KSA investigators discovered that both operators were making it remarkably easy for Dutch customers to register accounts and deposit funds.

Rather than blocking Netherlands-based players, the companies were deliberately marketing to them. Novatech operates under a Curacao licence, while Fortaprime is registered in Costa Rica but holds no recognised gambling permits.

The size of Novatech’s fine reflects its substantial turnover. KSA Chair Michel Groothuizen explained that penalties are calculated based on estimated Dutch player revenue, but Dutch law caps fines at 10% of global turnover. That limit proved frustrating for the regulator.

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

Warning Shot to Other Operators

The KSA has been flexing its enforcement muscles lately. Earlier this month, the regulator threatened prediction market platform Polymarket with weekly fines of up to $500,000 if it continues accepting Dutch users. The platform’s coverage of Dutch elections violated local regulations, which prohibit betting markets on domestic political outcomes.

These enforcement actions come as the Netherlands grapples with an uncomfortable reality. The country’s well-intentioned regulatory crackdown is pushing players toward unlicensed sites in significant numbers. Last year, the KSA reported that wagering on unregulated platforms had overtaken the licensed market, a striking admission of policy failure.

The Cost of Protection

The regulatory squeeze has been comprehensive. Dutch players now face monthly deposit limits of €700, reduced to just €300 for those aged 18 to 25. Tax rates on licensed operators have climbed sharply, hitting 34.2% last year before jumping again to 37.8% in January.

Sports gambling advertising has been banned entirely.

The financial impact is becoming impossible to ignore. Trade body VNLOK noted that the Netherlands collected €43.5 million less in gambling tax revenue in 2025 compared to 2024. In a letter sent this week, the organisation urged authorities to reconsider the relationship between tax burden, illegal supply, player protection and contributions to the exchequer.

Groothuizen acknowledges the tax increase is reducing government income but maintains the cost is justified if players receive better protection. The numbers tell a mixed story. Average monthly player losses have dropped from €146 in 2024 to €119 in 2025, which the regulator views as evidence of success.

A Cautionary Tale

Look, the Dutch experience offers valuable lessons as other jurisdictions consider tightening gambling regulations. The country has achieved its stated goal of reducing player losses within the licensed market. However, it has simultaneously driven a substantial portion of the market underground, where player protections are non-existent and tax revenue disappears entirely.

The KSA’s aggressive enforcement against Novatech and Fortaprime signals its determination to crack down on unlicensed operators exploiting this regulatory gap. Whether record fines will prove sufficient to stem the tide toward black market gambling remains an open question. What’s certain is that the Netherlands has created a cautionary tale about the unintended consequences of overzealous regulation, even when motivated by genuine concern for player welfare.

For the licensed operators who’ve invested in Dutch compliance, the situation presents a proper headache. They’re competing against unlicensed rivals who face none of the deposit limits, advertising restrictions or punishing tax rates while still managing to serve Dutch customers with apparent ease. The KSA’s enforcement efforts will need to be both sustained and effective to level that playing field.