The Dutch Council of State ruled late last year that there is no legal merit to the local Gaming Authority’s argument that it should be allowed to punish online payment service providers for offering their services to unlicensed iGaming operators.
The ruling concluded a two-year case involving Kansspelautoriteit and payment service provider CURO Payments. The Oost-Brabant court sided with the gambling regulator in November 2016, but the decision was contested by CURO Payments shortly after. The Dutch Gaming Authority will not be able to appeal the Council of State’s ruling.
The gambling regulator said on its official website that it was disappointed with the decision as it hampered its work as the body responsible for the regulation of the Netherlands’ gambling industry and for the prevention of unregulated services from being provided to local players.
Kansspelautoriteit further explained in its statement on the matter that it had acted against a number of online payment service providers, CURO Payments included, as it had considered it part of its responsibilities to stop the proliferation of unregulated gambling services.
The regulator pointed out that under the Netherlands’ current gambling laws iGaming is illegal in the country and so is its promotion. According to the Gaming Authority, by processing transactions to and from unregulated gambling operators, payment service providers had participated in the promotion of illegal services to Dutch players.
Siding with CURO Payments, the Council of State made it more difficult for Kansspelautoriteit to apply the country’s gambling regulations and to provide players with a safe gambling environment, the regulatory body went on to say in its statement on the matter.
Here it is also important to note that the gambling regulator drew attention to the fact that under current laws, it cannot collect fines from unlicensed operators, which too hampers its mission to ensure that gambling services are provided to local players only in a regulated environment and by locally authorized operators.
Update on the Netherlands’ Gambling Regulation Process
Kansspelautoriteit also pointed out late last year that the Remote Gambling Bill, the legislative piece aimed to regulate the Dutch iGaming market, is currently considered in the Senate. The bill was passed by the Dutch Lower House in the summer of 2016, but has seen little progress towards its eventual enactment since then.
Dutch politicians have recently pointed out that the Netherlands’ new gambling regulatory regime is likely to come into effect in early 2019. The Remote Gambling Bill, if approved, will allow international operators to apply for licenses from the Dutch Gaming Authority and to thus operate in the country’s regulated gambling environment.
What is more, the legislative piece will give Kansspelautoriteit more power to enforce gambling-related policies, regulate the gambling industry, and punish those who breach the law.
