Gambling corporation Gammix threatened with a multi-million dollar weekly penalty
In a significant move to curb unregulated gambling activities, the Dutch gambling authority, Kansspelautoriteit (KSA), has issued an injunction and a record fine of €19.7 million (approximately $21.5 million) against the gambling operator, Gammix Limited [1]. This penalty is a strong deterrent against illegal gambling operations and emphasises the need for compliance with licensing requirements.
The fine is in response to Gammix Limited's operations in the Netherlands, where despite a high player channelization rate of 91%, only about half of the revenue is captured by the licensed market. This discrepancy suggests substantial illicit gambling activities, including those conducted by Gammix Limited. Although the specific websites operated by Gammix Limited were not named, the magnitude and description of the unlicensed market presence highlight the seriousness of the issue.
The KSA's investigation between March 1 and 8, 2022, revealed that it was possible to play for money on the websites rantcasino.com and nordslot.com. Controls to ensure player and youth protection measures, compliance with guidelines for addiction prevention, and review of compliance with regulations were found to be inadequate.
Gammix Limited has a significant presence on the Dutch black market for online gambling, evading regulation by the authorities. The operator is demanded to immediately stop its offer for Dutch players and comply with the KSA's demands to prevent further fines. Failure to comply could result in a hefty fine of €1.47 million per week, with a maximum of €4.5 million.
The Centraal Register Uitsluiting Kansspelen (Cruks) is binding for both online and land-based gambling establishments, and the KSA has emphasised that the enforcement of guidelines is not limited to online providers but also applies to land-based gaming halls and betting shops. Several players have reported uncontrolled access to land-based gaming sites despite being registered in the Cruks self-exclusion list, prompting investigations by the KSA.
The KSA's efforts to ensure compliance with regulations extend beyond enforcement actions. Since October 2021, third parties can impose an involuntary gambling break on individuals registered in the Cruks self-exclusion list. The authority is also planning increased inspections to curb non-compliance with regulations.
The lack of regulation poses a great danger to local players, as measures for player protection and addiction prevention are lacking. The KSA director, Jansen, emphasised that the enforcement of guidelines is crucial for protecting players and preventing gambling-related harm.
References: [1] Gaming Intelligence, "KSA fines Gammix Limited €19.7 million for unlicensed gambling services to Dutch consumers," 2022. [Online]. Available: https://www.gamingintelligence.com/news/107827-ksa-fines-gammix-limited-e19-7-million-for-unlicensed-gambling-services-to-dutch-consumers [Accessed 2022].
What casinos and gambling games, like lotteries, are a concern for the Dutch gambling authority, Kansspelautoriteit (KSA), because unregulated operations, such as those by Gammix Limited, are found in the Netherlands? Gammix Limited's inadequate controls for player and youth protection, compliance with addiction prevention guidelines, and review of regulations are central to the KSA's concerns, leading to a record fine of €19.7 million.
