NETHERLANDS Law and Practice Contributed by: Alan Littler, Justin Franssen and Chris Adriaansz, Franssen Tolboom
• the game of chance is offered remotely, using elec- tronic means; and • participation must be without any physical contact with the operator. 3.5 Key Offences Under the BGA, it is prohibited to: • offer unlicensed games of chance; • promote/facilitate unlicensed games of chance; and • knowingly participate in unlicensed games of chance. Enforcement of these prohibitions takes place primar- ily by administrative measures, although there are no known cases of players being subject to enforcement measures for participating in unlicensed offers. There is an option to enforce via criminal law under specific circumstances, as detailed in the enforcement proto- col between the NGA and the public prosecutor. Following the amended BGA’s entry into force, the scope of the prohibition on promoting games of chance has been expanded to include the facilitation of such unlicensed offers. The expanded scope thus applies to providers of intermediary services, along- side those advertising unlicensed offers. 3.6 Penalties for Unlawful Gambling Breaches of the prohibitions against offering or pro- moting/facilitating unlicensed games of chance (as discussed in 3.5 Key Offences ) can be sanctioned by an administrative fine, or by a cease-and-desist order that is subject to a penalty for non-compliance. The NGA may also impose a binding instruction. The maximum administrative fine currently stands at EUR1,030,000 (or 10% of the turnover during the pre- vious year if this exceeds EUR1.030 million). Administrative fines regarding illegal operators are awarded in accordance with the NGA’s fining policy, under which the base fine is EUR600,000. However, if the offender’s turnover in the Netherlands exceeds EUR15 million, the fine is 4% of turnover. The fine will be increased in certain circumstances – for example, in cases where illegal offerings are aimed at minors
or where no information is provided on addiction pre- vention. Criminal sanctions can consist of a fine (up to EUR1.030 million for legal entities), imprisonment and community service. Please note that, as indicated, administrative law is the primary enforcement route. It has been noticed since 2023 that the NGA generally imposes cease-and-desist orders (with a penalty pay- ment clause) and subsequently administrative fines on unlicensed operators. It is expected that the NGA will use this or another of its enforcement measures when dealing with intermediaries who support illegal operators. See 11. Enforcement . The independent NGA ( Kansspelautoriteit ) is the regu- latory authority concerned with the supervision and enforcement of the BGA. The NGA is also tasked with the awarding of gambling licences. For slot machines, a licence is also required from the local municipality. The Dutch Customs and Tax Administration ( Belast- ingdienst ) is the authority responsible for imposing and collecting taxes (including gambling tax) on behalf of the Dutch state. 4.2 Regulatory Approach As stated in 3.1 Key Legislation , the BGA embodies a prohibited-unless-licensed approach. This means that all locally unlicensed gambling offers – apart from those forms that are exempt from licensing require- ments (as referred to in 2.2 Land-Based Gambling ) – are unlawful. Prioritisation In performing its enforcement duties, the NGA has dis- cretion with regard to the moment at which it launches enforcement investigations. Therefore, enforcement action by the NGA against locally unlicensed remote gambling offers revolves around a non-exhaustive list of triggers or questions. The answer to these ques- 4. Licensing and Regulatory Framework 4.1 Regulatory Authority
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