Dutch regulator threatens Curaçao-based operator with potential penalty
Total fine could reach €840,000 after the regulator found that Casbit Group offered services on its lala.bet site without holding a licence to operate in the Netherlands
The Netherlands Gaming Authority (KSA) has penalised Casbit group after ruling that the firm was operating in the country without a licence.
The regulator investigated the firm’s lala.bet website between 27 July and 16 August 2023 to see whether a player based in the Netherlands could gamble on the site.
During the investigation, a KSA supervisor was able to register and make a deposit of €20 (£17.10) using a Dutch bank account.
The supervisor then went on to play the slot game The Dog House and made bets between €0.20 and €1. The supervisor also observed that the site had an autoplay button that the player could use.
On 16 August 2023, the supervisor was able to log back into the account and continue playing games on the site.
In addition to being able to play on the site, promotional messages were displayed on the homepage, which displayed cash prizes in euros to be won. Following this initial investigation, the KSA informed the Curaçao-based operator to cease operations in the Netherlands on 13 October 2023 under the threat of penalties.
In a reply on 27 October, the operator said it had identified a technical glitch that allowed customers based in the Netherlands to access the site.
Casbit Group also said it had never intended to focus on the Dutch market and that lala.bet was no longer available in the country.
However, a KSA supervisor reinvestigated the site on 9 January 2024 and found that players from the Netherlands could still access the site.
When the supervisor went on the site, it came up with an IP block, but after the supervisor clicked on the “we use cookies” message, the site redirected the supervisor to its privacy policy. From there, the supervisor was able to play on the site again.
As per the initial investigation, the supervisor played The Dog House slot game and were able to place bets of between €2 and €0.20. Again the supervisor was able to use the autoplay function on the game.
Due to the fact the supervisor was still able to play on the site despite the adjustments the operator claimed it had made, the KSA ordered Casbit Group to cease operating in the Netherlands or face a financial penalty.
Casbit Group has a four-week window in which to comply with the order. Should the operator not comply, in the view of the KSA, a weekly penalty of €280,000 will be sanctioned.
The KSA confirmed a maximum fine €840,000 can be handed down.
Casbit Group has raised an objection to the regulator’s decision, although that document has yet to be made public by the regulator.
Earlier this week, the KSA imposed a cease-and-desist order against cloud service provider DigitalOcean after it ruled the firm had supported two affiliates that were advertising illegal operators on their sites.