Record 37 Million Euro Fine Levied Against Illegal Gambling Operator

The Dutch gambling regulator, Kansspelautoriteit (KSA), has sent a powerful message to the illegal gambling sector. By imposing a record-breaking fine of €37 million against EOD Code SRL, the authority is demonstrating its commitment to rigorous oversight of the digital gambling space. The operator, registered in Costa Rica, provided casino games in the Netherlands through an extensive network of websites without the mandatory state license. This represents the largest financial penalty the KSA has ever issued for such violations.

This regulatory action illustrates a new level of severity in European gambling policy. Investigators proved that Dutch players could access these platforms with almost no restrictions. In doing so, fundamental player protection measures that are standard in the regulated market were simply ignored. The fact that age verification was often completely missing or merely superficial was particularly alarming to the authorities. In an era where minor protection is a top priority, experts view this case as a wake-up call for the entire industry.

Numbers and facts

The investigation initially centered on the portal Instantcasino. However, KSA inspectors quickly discovered a wider network. A total of twelve websites were identified, including names such as Skyhills, Slotmonster, Betiro, Betblast, Fastslots, Goldenpanda, Sambaslots, Winningz, Incognitocasino, Foxygold, and Luckypays.io. The fine amount of €37 million is not a flat fee but is based on an estimate of the illegal revenue the company generated from Dutch customers.

The KSA applied a specific calculation formula here. When standard fines are disproportionate to the turnover achieved, the authority resorts to revenue-based sanctions. Investigators found that agency employees could easily register and place bets. No technical barriers were in place to exclude users from the Netherlands. Another grave point was the acceptance of cryptocurrencies and other anonymous payment methods. According to the KSA, this not only facilitates illegal play but also significantly increases the risk of money laundering.

Background

EOD Code SRL was not a new entity to the Dutch authorities. A penalty payment order had already been issued against the company in the past. Since this measure failed to stop the illegal activities, the KSA has now escalated the proceedings. The regulator emphasized that the fight against the black market cannot be won through administrative fines alone. It requires close cooperation with third parties such as banks, hosting providers, and payment service providers to sustainably block access to such platforms.

"Taking action against illegal offerings is not limited to administrative fines, as mentioned here, but also involves intensive collaboration with third parties, such as payment service providers, hosting parties, banks, and major tech companies." - Spokesperson for the Kansspelautoriteit (KSA)

The situation in the Netherlands remains tense. Although online gambling was legalized there in October 2021, studies show that the black market continues to thrive. Estimates from last year suggest that at times, more money flowed into unlicensed channels than into the regulated market. This record fine is intended to serve as a deterrent to other operators operating without permission.

Why it matters for German players

For players in Germany, this case serves as a vital warning. In Germany, the Interstate Treaty on Gambling 2021 (GlüStV 2021) regulates the market. Operators without a license from the Gemeinsame Glücksspielbehörde der Länder (GGL) are illegal. Anyone playing on sites like those mentioned above enters a legal gray area and forfeits all protections. In Germany, strict limits apply, such as the monthly deposit limit of €1,000 via the LUGAS system and the stake limit of €1 per spin on slots.

These rules are designed to protect against gambling addiction and debt. Illegal operators often advertise the absence of these limits, but this is exactly where the danger lies. Without a connection to the OASIS exclusion system and without a German license, there is no guarantee for the payout of winnings. Furthermore, the use of anonymous cryptocurrencies, as possible with EOD Code SRL, is strictly prohibited for legal German operators to prevent money laundering. German customers should always consult the official GGL whitelist before opening an account.

What it means for GGL-licensed casinos

Licensed operators in Germany feel vindicated by such news. The high regulatory effort and compliance costs are only competitive if the black market is effectively combated. The GGL monitors developments in neighboring countries closely. A fine as high as the one in the Netherlands sends a signal that violations of national laws can be existentially threatening. For GGL casinos, this also represents an opportunity to distinguish themselves through trustworthiness and transparency from the unregulated market, while authorities increase pressure on the payment routes and advertising platforms of illegal entities.