Dutch regulator wins legal victory over murder-linked licence refusal
The Hague District Court has ruled in favor of Kansspelautoriteit (KSA), the Dutch gambling regulator, concerning its decision to deny a license to a Malta-based online gambling operator.
In February 2023, the KSA rejected an application from the unnamed provider to enter the Dutch regulated gambling market, citing integrity concerns associated with a former shareholder of the company. This rejection underscores the KSA’s stringent assessment process, which emphasizes the importance of integrity and trustworthiness in the gambling sector.
During routine integrity assessments, the KSA discovered potential links between the former shareholder and serious criminal conduct, specifically the murder of an investigative journalist involved in uncovering a significant corruption scandal in Malta.
Although the shareholder had no current affiliations with the provider—having divested their shares in November 2021—the KSA insisted on further clarification regarding this matter. However, the information provided by the operator was deemed “incorrect, evasive, or incomplete,” leading the regulator to conclude that the operator could not be considered reliable. This decision emphasizes the critical nature of transparency and full disclosure in the gambling industry’s licensing process.
Appeal Filed Against License Rejection
The gambling provider contested the KSA’s ruling, escalating the matter to the Court of Appeal in the Netherlands. In its defense, the operator highlighted its proactive measures in severing ties with the problematic shareholder and acquiring full ownership of the company’s shares following the allegations. Additionally, they noted receiving clearance from the National Bibob Agency, which investigates the integrity of potential business partners in the Netherlands.
Demonstrating its commitment to regulatory compliance, the provider further outlined its active role in the establishment of new online gambling regulations in the Netherlands. This involvement included supporting the implementation of the Cruks self-exclusion scheme and sponsoring the Betblocker tool, which helps users block access to online gambling platforms. These initiatives illustrate the provider’s dedication to promoting responsible gambling practices.
Court Backs KSA’s Decision
The Hague District Court’s ruling, communicated on February 26, reaffirmed the KSA’s position. The court found that the inaccuracies presented by the operator during the licensing process were ample grounds for questioning the reliability of the company, thus validating the KSA’s authority to deny the application.
KSA welcomed the court’s decision, reiterating the critical nature of integrity assessments in its regulatory responsibilities. “Conducting integrity tests is vital to KSA’s supervisory role. The integrity of gambling providers is paramount, and it is the onus of the provider to demonstrate reliability through accurate information,” stated a KSA representative. They emphasized that if any investigative findings cast doubt on a director’s reliability or if inadequate information is provided by applicants, the KSA is justified in taking enforcement action or refusing license requests.
Despite the court’s ruling, the gambling provider retains the option to file a subsequent appeal, indicating an ongoing struggle over regulatory compliance and the significant expectations placed on gambling operators to maintain integrity in their operations.
As the landscape of the gambling industry continues to evolve, this case serves as a valuable reminder of the rigorous standards set forth by licensing authorities and the critical role of transparency and ethical governance in fostering a trusted gambling environment.
