In a recent incident, online gambling operator Videoslots found itself at odds with the Dutch regulator, Kansspelautoriteit (Ksa), after the regulator imposed a record-breaking fine of €9.87 million ($10.5 million) against the company. The dispute arose when a Ksa official gained unauthorized access to Videoslots’ website. However, Videoslots strongly refutes the accusation, asserting that it does not target Dutch players and, therefore, should not be subject to the Dutch Gaming Act.
The Unauthorized Access Incident:
During a brief period, Videoslots inadvertently displayed the regulator’s logo on its website before promptly removing it. Upon realizing the error, the Ksa attempted to register as a Dutch client but failed due to the robust security procedures in place. However, the regulator managed to gain unauthorized access by posing as a German customer and placing a small bet of 20 cents. Once Videoslots discovered the Ksa’s unauthorized access, it took immediate steps to strengthen security measures to prevent such incidents from occurring again.
Videoslots’ Defense:
Ulle Skottling, Deputy CEO at Videoslots, vehemently denies any wrongdoing on the company’s part. Skottling argues that Videoslots does not intentionally target Dutch players and, therefore, should not be subject to the Dutch Gaming Act. The company maintains that no Dutch players were able to access their platform during the disputed period, and thus, no violation of the law occurred. Furthermore, Videoslots highlights the impossibility of fully protecting against unauthorized access and criticizes the Ksa for lacking clear guidelines on the adequate security measures required. The operator also emphasizes that no demonstrable damage was caused, and the interests of Dutch consumers were never compromised.
Ksa’s Allegations and Imposition of Fine:
In response to the incident, the Ksa alleges that Videoslots violated the Dutch Gaming Act and proceeded to levy the highest fine in its history. The €9.87 million penalty is based on several estimations made by the regulator. However, Videoslots objects to the fine, citing a lack of basis for the calculations and an absence of proportionality in the imposed amount. The company questions the Ksa’s approach in determining the fine and maintains that the interests of Dutch consumers were never put at risk.
The dispute between Videoslots and the Ksa revolves around the alleged violation of the Dutch Gaming Act following an unauthorized access incident. Videoslots firmly denies targeting Dutch players and asserts that no violation occurred since no Dutch consumers accessed their platform during the disputed period. The company challenges the Ksa’s calculation of the fine and questions the proportionality of the imposed amount. As the case unfolds, the outcome will shed light on the interpretation and enforcement of online gambling regulations in the Netherlands, as well as the responsibilities of operators and regulators in ensuring a fair and secure gambling environment.