The Kansspelautoriteit (KSA) has imposed sanctions on two leading lottery operators in the Netherlands, the National Postcode Lottery and Friends Lottery. The regulator has directed the companies to stop supplying lottery games not specified in their respective licenses. Failure to comply with these directives will attract a recurring weekly fine of €250,000 per week, which can reach €1 million.
The fines resulted from an in-depth inquiry into the types of online lottery games the two lottery firms provide their players. On the first account, the Netherlands Gaming Authority found the National Postcode Lottery guilty of supplying games that don’t fall under this category. The games include:
The Friends Lottery has been offering its players Games Lottery, where gamers can play FriendsLottery Millionaires, Bingo Crush, and Club-man.
Following the investigation, KSA declared that there is a clear-cut distinction between lotteries and more dangerous gambling games.
The regulator said:
“A different license is required for both games of chance. Lotteries may not be offered online; it is only permitted to sell participation tickets (‘lots’) via the internet. The – for example – online offering of games that are linked to a lottery is prohibited. The law does not allow this. The KSA remains keen to ensure that lottery and online games of chance remain separate.”
Initially, KSA had publicly declared that it would strictly observe the KOA Act, launched in October 2021 to restructure the Dutch gambling scene. Recently, KSA said that the new law had successfully channeled most gamers away from unregulated gambling sites. In addition, the regulator anticipates the Dutch iGaming market to post a yearly growth of 13 to 15%.
It’s important to note that the latest lottery fines are not an entirely new thing in the Netherlands. The regulator has recently fined Shark77 (€900,000), Joi Gaming (€400,000), and Bingoal (€350,000). Equinox Dynamic from Curaçao and Domiseda and Partners from Slovakia were also fined €900,000 each.
Moreover, KSA has issued penalties worth €26m to five other gambling companies, including: