The Kingdom of Saudi Arabia (KSA) has launched an investigation into alleged breaches of legal compliance. Reports were received that certain operators had sent advertisements to individuals between the ages of 18 and 24. The investigation focused on the period from October 1, 2021, to April 1, 2022.
During the investigation, it was discovered that Bingoal, a licensed operator, had sent emails and messages to players within the “young adult” age group. This action goes against Article 2, Paragraph 4 of the Dutch Betting and Gaming Act (Bwrvk) which prohibits licensed operators from directing promotions and advertisements towards young adults.
In response to the findings, Bingoal admitted to sending communications to the specific players but denied targeting the age group. The operator claimed that the emails were part of general advertising sent to all players. Bingoal criticized KSA for their interpretation of the term “targeting,” stating that there is a lack of clarity in the law.
Bingoal further argued that any fines should take into account their status as a licensed operator. They expressed concern that imposing a fine ranging from €100,000 to €500,000 would give unlicensed operators, who are not required to comply with regulations, an advantage over licensees. Bingoal suggested that fines for licensed brands should be lower.
Despite Bingoal’s arguments, KSA ruled to proceed with a fine, based on similar decisions made during the investigation. KSA stated that an administrative fine would serve as a form of justice in this case and consider the seriousness of the violation.
KSA found that Bingoal had breached the rules outlined in the Bwrvk and noted that the operator did not take appropriate action to prevent certain emails from reaching young adults, despite having the necessary technology in place.
The regulator dismissed Bingoal’s claim that the law is unclear, emphasizing that it is the responsibility of licensees to understand their licensing requirements.
KSA determined a fine of €400,000. Of this amount, €350,000 was for the actual breach, and an additional €50,000 was attributed to the duration of Bingoal’s non-compliance with the law. The decision was made and approved on April 5.
