The Dutch gambling regulator has delivered its largest ever penalty, slapping online operator Novatech with a €24.9 million fine for running unlicensed gambling services targeting Dutch players. The Kansspelautoriteit (KSA) announced the record sanction on Tuesday, alongside a separate €1.8 million fine for another unlicensed operator, Fortaprime.

Novatech, which operates the Qbet and 55Bet brands under a Curaçao license, was found actively targeting Dutch customers despite lacking proper authorisation in the Netherlands. KSA investigators discovered that players could easily register accounts and deposit funds on both Novatech and Fortaprime platforms. Neither company made any real effort to exclude Dutch users.

Regulator Wanted to Go Further

The fine sounds big, but it’s actually just a fraction of what KSA Chair Michel Groothuizen believes would be appropriate. Dutch law caps penalties at 10% of an operator’s global turnover, limiting the regulator’s options. Worth knowing: Novatech reportedly earned hundreds of millions from Dutch players.

“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,” Groothuizen explained. The chair made clear that if the law permitted, he would have issued significantly harsher penalties.

Fortaprime, registered in Costa Rica without any valid gambling licenses, received a smaller fine reflecting its lower turnover from Dutch customers.

Rising Tensions in Dutch Market

The crackdown comes as the Netherlands grapples with the unintended consequences of its strict regulatory approach. The country has introduced monthly deposit limits of €700, reduced to €300 for under-25s. They’ve banned gambling advertising in sports. Plus, they’ve hiked operator taxes to 37.8% this year, up from 34.2% in 2024.

These measures have had a noticeable impact on the regulated market. Tax revenue dropped by €43.5 million between 2024 and 2025. Meanwhile, the KSA’s own figures show more money being wagered on unlicensed platforms than licensed ones. The regulator has acknowledged that restrictive rules are pushing players towards unregulated sites where consumer protections don’t apply.

Trade body VNLOK has called for authorities to reconsider the current tax rates, urging a review of the relationship between tax burden, illegal supply, and player protection. Average monthly losses per player have fallen from €146 to €119. Critics question whether players are simply moving their spend to less transparent operators.

Wider Enforcement Campaign

The Novatech and Fortaprime fines form part of a broader enforcement push by the KSA. The regulator recently threatened prediction market platform Polymarket with weekly fines of up to $500,000 for offering markets on Dutch elections, which are prohibited under local law.

Groothuizen has defended the regulatory approach despite the revenue decline, arguing that player protection justifies the cost. However, the Dutch experience offers a cautionary tale for other jurisdictions considering similar restrictions. Player losses in the regulated market have decreased, sure. But the growth of unlicensed alternatives raises questions about whether the overall harm has genuinely reduced or simply shifted elsewhere.

The record fines signal that the KSA intends to maintain pressure on unlicensed operators, even as it navigates the challenging balance between regulation, revenue, and player safety in an increasingly competitive European market.