The Dutch gambling regulator, Kansspelautoriteit (KSA), has issued instructions to two licensed operators after an investigation revealed a lack of sufficient control over the betting behavior of players, a requirement under the Dutch Anti-Money Laundering and Counter-Terrorist Financing (WWFT) law. The KSA’s investigations, initiated with a market-wide preliminary study in the spring of 2022, delved into the operations of the two license holders in question. The findings uncovered instances where young adults experienced substantial losses without proper intervention or investigation policies in place.
Insufficient Player Control Measures:
The KSA’s scrutiny involved the examination of player data, revealing that both operators failed to implement measures to monitor and control excessive betting behavior. Notably, young adults were found to have incurred significant losses, reaching tens of thousands of euros in a short timeframe. The regulator emphasized the necessity for operators to introduce measures to assess if players can afford to engage in high-stakes betting activities.
Specific Cases of Concern:
Highlighting specific cases, the KSA disclosed that a 21-year-old player lost €17,000 ($17,524) between October and December 2021 while betting with one of the operators. Additionally, a 26-year-old incurred almost €114,000 in losses in November 2021. The regulator categorized these instances of substantial player losses as “unusual behavior,” emphasizing the obligation to report such cases to the Financial Intelligence Unit Netherlands (FIU).
Reporting Obligations Emphasized:
In its directive, the KSA reminded operators of their reporting obligations, stressing the need to report unusually high deposit amounts and suspicions of match-fixing. The regulator underscored the importance of operators actively monitoring gaming behavior and promptly reporting any irregularities to the appropriate authorities.
Instructions for Operators and Monitoring Tightening:
The two operators, not named in the statement, have been advised by the KSA to implement measures within the next three months to enhance the monitoring of gaming behavior. The regulator will conduct a follow-up assessment at the beginning of the next year to ensure compliance with the instructed measures. This move reflects the KSA’s commitment to enforcing regulatory standards and safeguarding the integrity of the Dutch online gambling market.
The KSA’s instructions to operators underscore the regulatory authority’s commitment to upholding the integrity of the Dutch gambling landscape. By addressing lapses in player behavior controls, the KSA aims to ensure that operators implement measures to prevent excessive losses and promote responsible gambling practices. The regulator’s emphasis on reporting obligations and the specific examples provided serve as a stern reminder to operators of the importance of vigilance and compliance with anti-money laundering laws. The coming months will be crucial for operators to demonstrate their commitment to tighter monitoring of gaming behavior as mandated by the KSA.