KSA warns Dutch lottery operators after ‘risky games of chance’ offerings

By | July 29, 2022

The Dutch Gambling Authority, Kansspelautoriteit (KSA), has revealed that it has found increasing cases of lottery operators in the country providing unlicensed products. 

Lotteries are not permitted to provide online gaming products such as casino and slot titles, due to these offerings being considered ‘riskier’ than standard lotteries. 

Although both lottery and casino/slot products are considered ‘games of chance’ under Dutch gambling law, the former is considered ‘less risky’ than the latter. 

“The distinction between risky and less risky games of chance is there to protect consumers,” the KSA explained. 

“People who want to participate in a lottery may not come into contact with more risky games of chance without being invited. 

“These can lead to gambling addiction and related social problems. Important objectives of the Ksa are consumer protection and the prevention of gambling addiction.”

Dutch lottery licences enable providers to sell ‘participation certificates’ or ‘raffle tickets’ via the internet, but offering a game linked to a lottery online is not permitted. 

Provision of games of chance is one of the most tightly regulated areas of Dutch online gambling under the KOA Act regime, with operators offering such products without a licence often penalised.

Earlier this month, Gammix was handed a cease and desist order by the KSA for illegally providing games of chance across 15 online casino sites, facing a fine of €4.5m if it did not comply.

A previous development saw 13 gambling affiliates handed penalties by the Dutch regulatory authority for advertising illegal game of chance, out of a total of 15 which had been investigated for licencing violations.  

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