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Dutch Company Faces €400,000 KSA Fine over Illegal Promotion of Gambling Services to Young Adults

Earlier this week, the Dutch gambling regulatory body served a fine against one of the divisions of the local casino operator JVH Gaming and Entertainment Group as a result of the company’s violations of some rules related to gambling advertising for young adults.

At the time, the Kansspelautoriteit (KSA) unveiled details about the regulatory sanction faced by JOI Gaminga fine worth €400,000. Before the official introduction of the monetary penalty, the country’s gambling industry watchdog launched an investigation into the company’s operations on the Dutch gambling market. Eventually, the probe uncovered that JOI Gaming set out marketing messages promoting its website to its customer base in the period from December 8th, 2021 to March 7th, 2022.

However, the KSA shared that some of the individuals who received such promotional messages were young adults between 18 and 24 years of age. Currently, the Netherlands features strict gambling laws, some of which include tough regulation of gambling advertising that applies to all licensed gambling operators in the country.

The Kansspelautoriteit believes that targeting young adults breaches the main law regulating gambling – the Dutch Gambling Act – and more specifically, Article 2, paragraph 4 of the Gambling Act. The gambling regulatory body explained that the protection of young adults is explicitly included in the aforementioned piece of legislation, because such customers run a greater risk of developing problem gambling behavior. The KSA further noted that the enforcement of the gambling advertising ban regarding young adults is one of the watchdog’s priorities.

KSA Wans That Gambling Advertising to Young Adults Is Restricted under Dutch Gambling Laws

Along with the announcement of the €400,000 fine that is being faced by JOI Gaming, the Chairman of Kansspelautoriteit, René Jansel, explained that the country’s gambling law clearly suspends local gambling companies from advertising their products and services to young adults. In addition, he reminded that the regulatory body reiterated the country’s rules for advertising back in December 2021, so the Dutch Gaming Authority believes that the provider’s decision to focus on approaching young adults with gambling promotions was serious and culpable, especially considering the fact that the legislator clearly forbids the recruitment activities aimed at the aforementioned group of customers.

The Dutch gambling regulator’s announcement about the sanction served to JOI Gaming comes soon after the Kansspelautoriteit confirmed its plans to fight against gambling companies that operate illegally in the retail sector, saying that dealing with them will be one of its top priorities throughout the year.

KSA Chairman explained that there are currently some large-scale gambling operations that not only violate the established regulations in the country’s gambling sector but also void paying taxes. According to him, such companies operate illegally and represent a threat to the Dutch customers’ financial stability and overall well-being.

This is not the first monetary penalty imposed by the Kansspelautoriteit on a local gambling company since the beginning of the year. Earlier in January, a hefty €900,000 fine was issued by the regulator against the Malta-based online gambling operator Shark77 over a serious violation of local gambling laws. According to an announcement that was made by the KSA at the time, the company offered its services to Dutch customers without the required operating permit.

 Author: Harrison Young

Harrison Young is an experienced writer, who started his career almost 8 years ago. Prior to joining our team at CasinoGamesPro, he worked as an editor for a small magazine.