KSA hits DigitalOcean with cease-and-desist order over illegal affiliate advertising
Regulator issues instructions to cloud service provider to cease its services in conjunction with two affiliates in the Netherlands promoting unlicensed operators
The Netherlands Gaming Authority (KSA) has imposed a cease-and-desist order against cloud service provider DigitalOcean after it ruled the firm had supported two affiliates displaying illegal operators on their respective sites.
The two affiliates in question are casinozonderregistration.net and nieuw-casinos.net, which the KSA established were promoting unlicensed operators in the Netherlands.
The KSA noted that the ultimate ownership of both sites could not be determined, meaning the cease-and-desist notice was handed to DigitalOcean as the service provider allows the sites to be live in the country.
In the case of nieuw-casinos.net, the KSA established on 31 January 2023 that the site was advertising unlicensed operators before proceeding to unsuccessfully establish the owner of the site.
An email from the regulator was sent to the contact email address on the nieuw-casinos.net site on 9 February 2023, but no response was received.
On 2 March 2023, the KSA was made aware DigitalOcean was the service provider for the affiliate and sent a notice to the firm on 24 April to inform the company it was hosting an illegal platform.
For the casinozonderregistration.net site, the KSA determined the platform was advertising illegal operators on 8 February 2023.
Once again, emails were sent to contacts detailed on the casinozonderregistration.net site, but to no avail.
In both instances, DigitalOcean requested the regulator submit a court order so the provider could process the reports the two sites were advertising illegal operators.
The KSA then issued an intention to impose a binding instruction on 22 September 2023. DigitalOcean again asked the regulator, on 29 September, for a court order before agreeing to proceed with the matter.
On 26 January 2024, the KSA received approval from the District Court in Rotterdam to authorise the binding instruction.
Following the publication of the notice of the binding order on 22 March 2024, DigitalOcean has four weeks to cease providing services to the aforementioned sites or risk further sanctions by the regulator, such as a fine or a penalty.
The KSA said the four-week window was a “reasonable” timeframe for DigitalOcean to action changes.
DigitalOcean does hold the right to lodge an objection against the decision but, at the time of writing, has yet to do so.
Giving reasoning behind its decision, the KSA said: “The Authority considers this to be a binding instruction in a specific case, a necessary, appropriate and proportionate measure to actually end the violation.
“The Authority has tried, in vain, to contact the holders/owners of the websites casinozonderregistration.net and nieuw-casinos.net in various ways to stop the violations.
“In light of the facts and circumstances mentioned, there are no circumstances that require refraining from issuing a binding instruction.”