In a decisive move against illegal online gambling, the Netherlands’ gambling authority, Kansspelautoriteit (KSA), has mandated the hosting provider DigitalOcean to stop offering services to websites engaging in unlawful affiliate practices. This directive comes after a thorough investigation by the KSA into websites promoting unlicensed gambling activities, spotlighting the regulator’s stringent stance on adhering to the country’s gambling laws.
Initial Investigations and Findings
The probe initially centered on two specific websites, Casinozonderregistration.net and Nieuwe-casinos.net, which were suspected of facilitating illegal gambling. The owners of these sites remained elusive, prompting the KSA to identify and approach DigitalOcean, the service provider hosting these platforms. Citing violations of the Netherlands’ Gambling Act, specifically Article 1, paragraph 1(b) which bars the promotion or participation in unlicensed gambling offerings, the KSA issued a binding order to DigitalOcean.
Despite acknowledging its role as the host for the contentious websites, DigitalOcean resisted discontinuing its services without a formal court mandate. This stance remained even as KSA clarified that the websites were indeed in breach of the law by hosting illegal gambling games.
Legal Backing and Compliance Deadline
Following an appeal for judicial backing, the District Court of Rotterdam sided with KSA, authorizing it to enforce its binding order against DigitalOcean. The court’s decision marked a significant victory for the regulator, which mandates DigitalOcean to implement “all necessary measures” to halt the infringement by March 22, 2024, under threat of penalties or fines for non-compliance. This development underscores the legal and regulatory framework’s capability to address and mitigate illegal online gambling activities effectively.
Broader Regulatory Efforts and Industry Impact
This action against DigitalOcean is part of KSA’s broader crackdown on unregulated gambling activities. In a notable recent action, KSA levied a substantial €19.6 million penalty against Gammix Limited for operating without a license in the Netherlands. Gammix’s defiance of prior orders to exit the Dutch market led to this significant fine, highlighting the regulator’s commitment to enforcing compliance and the serious repercussions for those who flout the rules.
As KSA continues to monitor and regulate the gambling sector, its efforts have significantly impacted the industry’s landscape. Recent reports indicate that the Dutch market now boasts over one million active online accounts, reflecting the sector’s growth and the regulator’s role in ensuring a safe and legal online gambling environment.
The firm stance of KSA, underscored by its recent actions against DigitalOcean and Gammix Limited, sends a clear message about the importance of compliance within the gambling industry. As regulations tighten, providers and affiliates alike must navigate the legalities of their operations meticulously to avoid facing similar punitive measures.
