The Netherlands’ gambling watchdog has handed down its biggest ever penalty, fining online operator Novatech nearly €25 million for illegally targeting Dutch punters. The Kansspelautoriteit (KSA) announced the record sanction on Tuesday, alongside a separate €1.8 million fine for another unlicensed outfit, Fortaprime.

Novatech, which runs the Qbet and 55Bet brands under a Curaçao licence, was pinged for making it easy as pie for Dutch players to sign up, deposit, and gamble on its platforms. The regulator’s investigators found the company wasn’t just failing to block Dutch customers. It was actively chasing their business.

The size of the fine reflects Novatech’s turnover in the Netherlands, but KSA Chair Michel Groothuizen made clear he’d have gone much harder if Dutch law allowed it. Current regulations cap fines at 10% of global turnover, keeping this penalty at €24.9 million. Without that ceiling? Groothuizen reckons the bill would have topped €100 million.

“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.”

Crackdown Comes Amid Revenue Squeeze

The timing’s interesting here. These fines land just as the Netherlands grapples with a sharp drop in regulated gambling tax revenue, brought on by tighter restrictions the government introduced to shore up player protections. The country’s gambling duty rate climbed to 37.8% in January, up from 34.2% last year, while monthly deposit limits were capped at €700 for most punters and €300 for under-25s.

Those moves have had consequences. Trade body VNLOK reported that tax revenues fell €43.5 million short in 2025 compared to 2024, and the group’s now calling for authorities to rethink the balance between tax rates, illegal supply, and player safety.

Last year, the KSA itself noted that betting volumes on unregulated platforms had actually overtaken the licensed market. Players clearly voting with their feet when faced with what they see as overly restrictive rules.

Groothuizen acknowledges the tax hike is costing the treasury money, but he’s standing firm. The regulator believes stricter controls are worth the short-term revenue hit if they deliver better player protections. Average monthly player losses have dropped from €146 in 2024 to €119 in 2025, which the KSA sees as evidence the strategy’s working.

Sending a Message to Offshore Operators

The Fortaprime penalty adds weight to the signal the KSA’s sending. That operator, registered in Costa Rica without any valid gambling licence, faced the same accusations of deliberately courting Dutch custom. Both companies now face bills that should give other offshore operators pause before targeting the Dutch market.

The regulator’s also been rattling its sabre at prediction market platform Polymarket recently, threatening weekly fines of up to $500,000 if it doesn’t stop offering markets on Dutch elections. That’s illegal under local law, and the KSA’s made clear it won’t hesitate to follow through.

Whether these enforcement actions can reverse the flow of Dutch players to unlicensed sites remains to be seen. The Netherlands is becoming a test case for how far regulators can push restrictions before losing control of their markets entirely. For now, the KSA’s betting that hefty fines and aggressive enforcement will convince both operators and players that staying on the right side of the law is the smart move.

The bigger question? Whether other European jurisdictions watch what’s happening in the Netherlands and decide to follow suit, or take it as a cautionary tale about over-regulation driving business underground.