The Dutch gambling regulator, Kansspelautoriteit (KSA), has imposed a penalty payment order of up to €200,000 on an unlicensed bingo organizer for operating illegal games via Facebook. This action follows repeated violations despite prior warnings, highlighting the regulator’s strict enforcement of gambling laws in the Netherlands.
Timeline of Events
The case involves Baco’s Zaalbingo, a Facebook group that hosted illegal bingo games through live video streams. KSA’s investigation began in 2022, when the organizer was warned to cease all activities. However, bingo games were still advertised and played on August 31 and September 1, 2024, prompting further action.
Tickets for these games were sold for €25, with bingo booklets priced at €62.50. Prizes exceeded the legal limits set by Dutch law, where individual prizes cannot surpass €400, and the total prize pool must not exceed €1,550.
KSA revealed that the earnings from these games amounted to tens of thousands of euros, directly benefiting the organizer rather than being allocated to charitable causes as required by law.
Violations and Penalties
Under Dutch law, bingo games may only be organized by associations that have been established for at least three years. Gambling operators are explicitly prohibited from offering bingo in the country. Additionally, the Netherlands has implemented strict advertising bans for gambling, further complicating such unlicensed operations.
Despite these regulations, the organizer continued advertising and hosting games on Facebook, even admitting in a video that they would host more bingos. This led KSA to impose a penalty payment order comprising:
- €13,125 per bingo game, up to a maximum of €131,250.
- €6,562 per advertisement, capped at €65,625.
Should the organizer fail to comply, they could face the full penalty amount of €196,875.
Regulatory Enforcement
KSA emphasized that the chance of further violations remains high, citing the organizer’s open admission of hosting bingos. “The proceeds from this type of illegal bingo can run into tens of thousands of euros. That is why the KSA takes tough action against this,” the regulator stated.
The ruling comes amid a broader crackdown on illegal gambling activities in the Netherlands. Just a day earlier, KSA announced a €1.1 million fine against Alimaniere Sociedad De Responsabilidad Limitada for unlicensed online gambling operations.
Gambling Regulation in the Netherlands
The Netherlands maintains strict rules for gambling activities, particularly regarding bingo. To legally organize bingo, entities must:
- Be registered as an association for at least three years.
- Offer prizes that do not exceed €400 for individual rewards or €1,550 for the total prize pool.
- Avoid any association with gambling operators.
Advertising gambling is also heavily restricted, with a near-complete ban on gambling ads implemented in July 2023.
Broader Implications
This case underscores KSA’s commitment to curbing illegal gambling and protecting consumers. By enforcing significant penalties, the regulator aims to deter repeat offenses and maintain the integrity of the Dutch gambling market.
Source:
Bingo Organizer Penalized for Illegal Activities in the Netherlands, igamingbusiness.com, January 2025.
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