FBC BV Faces €840,000 Penalty in Gambling Crackdown
The Netherlands Gaming Authority (KSA) has imposed a significant penalty on Curaçao-based operator FBC BV for offering unlicensed games of chance on its platform, FreeBitco.in. This decision highlights the Dutch regulator’s firm stance on protecting players and maintaining the integrity of its gambling market.
Investigations Expose Illegal Operations
The KSA’s investigations, conducted between January 2023 and November 2024, uncovered that FreeBitco.in allowed Dutch players to create accounts, deposit funds, and gamble on its platform without the required permits. Despite FBC BV’s claims of compliance, including blocking Dutch IP addresses, the KSA found no evidence of effective measures to prevent local participation.
A KSA inspector successfully registered, deposited bitcoin, and placed a bet, further confirming the platform’s accessibility to Dutch users. In response to these findings, the KSA issued a penalty payment order of €280,000 per week for continued violations, capped at €840,000.
FBC BV’s Defence Falls Short
FBC BV argued that FreeBitco.in primarily serves as a giveaway platform, but the KSA countered this by demonstrating ongoing gambling activities accessible to Dutch residents. Despite requests for extensions and claims of technical difficulties, the company failed to implement effective compliance measures.
The penalties remain in force despite FBC BV’s legal objections. Moreover, the company’s troubles extend beyond the Netherlands, with Australian regulators also issuing warnings over its unlicensed operations targeting Australian players.
KSA’s Commitment to Player Protection
The penalty against FBC BV is part of a broader campaign by the KSA to curtail unauthorised gambling operations. In recent months, the regulator has imposed similar penalties on operators such as Techno Offshore, Novatech Solutions, and BlockDance.
Michel Groothuizen, chair of the KSA, emphasised the authority’s determination to tackle the black market, stating, “We will send out warning letters more often and deliver short, quick blows, such as with an order subject to a penalty.”
Promoting Responsible Gambling
In parallel with its enforcement efforts, the KSA has launched a campaign encouraging responsible gambling. The initiative, titled “Pick up your life again, take a gambling stop,” promotes the Cruks self-exclusion register and aims to support individuals struggling with gambling-related challenges.
With its dual approach of punitive measures and player support, the KSA is sending a clear message: the Dutch gambling market prioritises transparency, compliance, and player protection.
The Netherlands Gambling Authority, known as de Kansspelautoriteit (KSA), has recently issued formal warnings to three gambling operators for breaching new sponsorship regulations that came into force on 1 July. Under these regulations, gambling sponsorship in television programs and events is banned, with an exception for sports sponsorship, which will only be allowed until 1 July 2025. However, even within sports, companies must ensure that vulnerable groups, such as minors and young adults, are not targeted by their sponsorship activities.
Incident Reports: Sponsorship Violations
The KSA highlighted three recent incidents where gambling companies fell short of compliance:
- Expired Event Sponsorship
After a sponsorship deal expired, a national event organiser continued displaying the gambling operator’s logo beyond the 1 July deadline. The operator swiftly responded to the KSA’s warning and removed all branded materials from the event. - Exposure to Minors at a Sporting Event
In another case, a major sporting event sponsored by a gambling company inadvertently exposed its branding to children and young adults participating in pre-event activities. The KSA reminded operators to take responsibility for ensuring their advertisements do not reach vulnerable groups. - Gambling-Branded Merchandise for Children
In the third incident, an online sports shop was found selling gambling-branded T-shirts, including sizes for children, as part of a sponsorship deal with a popular athlete. Upon receiving the KSA’s notification, the operator removed its logo from children’s sizes to prevent exposure to young audiences.
Ensuring Compliance with Third-Party Partnerships
The KSA emphasized that gambling companies must actively manage third-party sponsorship activities and maintain strict oversight to ensure regulatory compliance. The authority warned that further violations could lead to more severe penalties, urging companies to establish clear guidelines with their partners about the display and distribution of sponsorship materials.
Enforcement on Illegal Gambling: NetX and Winbet Fined
In a separate enforcement action, the KSA imposed significant penalties on two companies, NetX Betting Limited and Winbet, for operating illegal gambling services accessible to Dutch residents.
NetX: Repeat Offender
NetX Betting Limited was fined €675,000 for allowing illegal online gambling on two websites, pferdewetten.de and betbird.com, without any measures to block Dutch users. This is a repeated offense for NetX, highlighting the KSA’s commitment to cracking down on illegal providers.
Winbet Faces Weekly Penalties
Similarly, Winbet faced fines of €280,000 per week, with a maximum penalty cap of €840,000, after a KSA investigation revealed illegal gambling activities on four websites. Despite regulations, Dutch users could freely create accounts, deposit funds, and gamble on these platforms.
Global Gambling Industry Fines in 2024
With recent fines, global penalties for gambling regulation violations have topped $103.1 million in 2024. Australia currently leads in enforcement, contributing nearly $55 million in fines to the global total.
