Sarah Eternal SRL fined €900,000 by Dutch regulator

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The Kansspelautoriteit (KSA), the regulatory body overseeing gambling operations in the Netherlands, has recently imposed a substantial fine on Sarah Eternal SRL for illicitly offering gambling services via its CasinoSky platform.

On February 20, the KSA levied a fine amounting to €900,000 (approximately $976,424 or £756,027), citing that the operator failed to implement adequate measures to prevent Dutch residents from gambling on its site.

CasinoSky provides a range of games of chance, yet it operates without a valid license in the Netherlands. This incident is not isolated; the site was previously fined €280,000 in March 2024 when KSA investigators discovered that individuals with Dutch IP addresses could still access its offerings.

Investigations revealed that players were permitted to make deposits using credit cards from Dutch banks and that the registration process automatically populated the area code with the Dutch +31, indicating a blatant disregard for regional regulations.

Moreover, the website’s terms of service did not indicate any exclusion for Dutch gamblers, further complicating compliance with KSA mandates.

KSA chairperson Michel Groothuizen highlighted the importance of maintaining a regulated gaming environment. “The Netherlands has established a legal framework for gambling to ensure that these activities occur safely,” Groothuizen stated. He emphasized the risks associated with illegal operators, noting that they often neglect essential safeguards against problematic gambling behaviors.

“For instance, there was no age verification process in place, allowing minors to engage in gambling, and the platform facilitated transactions using cryptocurrency,” Groothuizen explained. “The KSA is committed to stringent actions against such entities.”

Headquartered in Costa Rica, Sarah Eternal SRL has a six-week window from the date of the fine to either remit the €900,000 penalty or contest the ruling.

Calls for Increased Regulatory Oversight

In light of ongoing concerns surrounding player protection, a review of the Netherlands’ Remote Gambling Act, established in 2021, was conducted last year. The findings indicated that existing measures to safeguard players were inadequate and not effectively implemented.

In a recent warning, KSA chairperson Groothuizen cautioned against proposals to raise the legal online gambling age to 21, suggesting that such a measure could inadvertently drive younger players towards unregulated black-market platforms, where player safety is grossly neglected.

Groothuizen’s remarks were prompted by a correspondence from Teun Struycken, the Dutch state secretary for legal protection, who advocated for enhanced enforcement strategies. This includes elevating the legal betting age and empowering regulators with greater authority to tackle non-compliance.

Struycken also suggested the implementation of industry-wide deposit limits. While Groothuizen acknowledged the benefits of this approach, he expressed concerns regarding the practicalities of enforcing such restrictions.

Since October of last year, net deposit limits for players have been instituted in the Netherlands; however, these limits vary by licensed operator. Consequently, if players reach their deposit cap on one site, they can circumvent this restriction by shifting to another site, maintaining their original limit in full.

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