Shark77, a Malta-based operator, has been fined €900,000 (£789,089/$975,368) for offering illegal games of chance in the country. This violates the Betting and Gaming Act if the operator does not have the required approval.
The Dutch gaming regulator, KSA, conducted investigations into Shark77 in December of 2021 and followed up with additional probes in January and February of the following year. It was discovered that Shark77 was offering both sports betting and online casino games on its website, 18bet.com. The regulator found that there were no technical measures in place to prevent Dutch players from accessing these games. The website was accessible via a Dutch IP address and the Netherlands was listed as a player’s country during registration.
When contacted by KSA, Shark77 denied intentionally targeting the Dutch market and claimed to be operating in accordance with its license issued by the Malta Gaming Authority. However, KSA determined that Shark77 had violated Dutch rules by offering games and that possessing a license in Malta did not authorize them to provide gaming services to Dutch customers. KSA also emphasized the lack of measures to prevent Dutch players from accessing the website and noted that users were able to conduct financial transactions directly from a Dutch bank account.
KSA rejected Shark77’s arguments and ordered the operator to pay the full €900,000 fine. KSA highlighted that legal providers of online games of chance bear costs that illegal providers do not face. Additionally, illegal providers evade paying taxes in the Netherlands and are not bound by the strict regulations of the Betting and Gaming Act and licensing requirements. This enables illegal providers to offer games that are prohibited for licensed operators.
KSA Chairman, René Jansen, expressed concern about the attractive appeal and potential harm to players caused by illegal providers, which undermines the promotion of legal gambling options. Jansen emphasized the importance of protecting Dutch players by ensuring they choose licensed providers authorized by the Gaming Authority.
