Dutch enhanced player monitoring plans head for EC approval

Weerwind first announced the measures – which would amend aspects of the Remote Gambling Act (KOA) – in December. The submission to the European Commission took place on 28 February, with a standstill period now in place until 29 May. This standstill allows the amendments to be considered by the European Commission and other member states.

The notification outlines a number of amendments to the KOA, which took effect on 1 October 2021. Among other things, if enforced, these would include monitoring on players who deposit more than €350 per month.

Changes to the player profile

An amendment to Article 3.19 of the KOA proposes that players enter their bet limits in an empty input field. This is instead of a pre-set amount, to avoid influencing the player.

The notification also outlines a “contact point” for operators, set out in Article 3.19.d. This means that the operator must contact a player if they are aged 24 or over and deposit more than €350 per month, €87.50 per week or €12.50 per day. For players aged between 18 and 24, this point is €150 per month, €37.50 per week and €5.35 per day.

An amendment to Article 3.5 of the KOA suggests that all bets, winnings and losses a player incurs must be displayed in euros. However, in certain circumstances where poker is played, these would be shown in US dollars.

A similar amendment was suggested for Article 3.5.a. In this instance, if a player places a bet that is higher than the minimum amount, the player would receive a warning message communicating that they can submit a lower bet. The message would also display the minimum bet amount.

KOA amendments necessary for player protection

The draft text identifies three areas addressed by the amendments. These are how operators display information to players and the option for high play limits, clarity surrounding changing play limits, and how gaming limits are put into practice.

According to the text, these mean that “with the current method, excessive participation and gambling addiction can not be sufficiently counteracted and that additional measures are necessary”.

The text goes on to emphasise the need for change to the current regulation. It admits that although operators will be under more pressure, this is necessary for player protection.

“These changes will place additional demands on the licensee and increase their burdens, but the additional demands are necessary to provide better protection for the players and point out the risks of gambling,” it reads.

When Weerwind first announced the measures, Peter-Paul de Goeij, chairman of the Dutch Online Gambling Association (NOGA) said the measures emphasised the role of duty of care. But he added that legal gambling must not be made to seem “too unattractive”.

“It is good that the minister clarifies the rules for safe gambling and thus makes the duty of care more concrete,” he said.

“At the same time, we must always be careful that legal gambling is not made too unattractive. We will study the proposal carefully and make suggestions to improve it and thus achieve the desired effects.”

KSA issues record €19.6m fine

The enforcement of the KOA brought about a new era of regulation for the Netherlands in 2021. Since then, the Netherlands’ regulator Kansspelautoriteit (KSA) has closely monitored the market for illegal operators offering services to Dutch residents.

Last week, the KSA issued Gammix with a record €19.6m fine for offering games to Dutch residents without a licence. Gammix had been issued with two previous orders by the KSA. One was in July 2022 – to remove itself from the market or risk paying €1.4m – and the second was an order to pay €4.4m in March last year.

In its decision, the KSA noted that Gammix had “not taken any measures to ban players from the Netherlands”. René Jansen, chairman of the KSA said the regulator was working to shut down illegal sites to protect Dutch players.

“Dutch players must be protected: that is why we are cracking down on illegal offers,” he said. “We see that illegal providers often pay little attention to the player and do not adhere to a duty of care.”

“We also see this with this provider: there was no clear age verification. That is extremely harmful. We will therefore continue to take sanctions, even if providers repeatedly make mistakes.”

More changes likely afoot

The industry is likely to see further changes in the Netherlands, with a recent court ruling throwing the Dutch lottery monopoly into question.

Last week, the East Brabant District Court ruled in favour of two operators that had argued their applications for licences had been unfairly rejected by the KSA. At the time, the KSA has dismissed the applications with the argument that Nederlandse Loterij already held the monopoly in the country.

Furthermore, the court said the KOA – on which KSA based its rejections – did not align with Article 56 of the Treaty on the Functioning of the European Union. This article bans prohibitions on offering services within EU member states.

Ultimately, the court concluded that stopping operators from offering services outside a monopoly system is not unnecessary to protect “public interests” in gambling. This is because it does not support essential aspects such as player protection.

The court ultimately determined that Dutch gambling policy is “no longer horizontally consistent” in the “current state of affairs”.

“[The] court notes the current gambling policy, after the entry into force of the KOA Act, has a single licence system for land-based games of chance with a smaller risk of addiction and a smaller chance of criminal activities,” read the ruling.

Melco targets growth after post-pandemic recovery in 2023

Revenue for the 12 months to 31 December 2023 hit $3.78bn (£3.00bn/€3.49bn), up 179.6%. Melco put this down mainly to the relaxation of pandemic-related restrictions within its core Macau market. 

However, Melco also noted the impact of Studio City Phase 2 in Macau in January 2023. This featured new hotel, retail and dining facilities, thus helping increase revenue in the region.

Seeking to build on this, Melco will this year be pushing ahead with more development. This includes a new cineplex at Studio City Phase 2 and renovations at the Countdown Hotel, also in Macau.

“2023 was a year of post-pandemic recovery and the debut of our new developments,” chairman and CEO Lawrence Ho said. “2024 is set to be another exciting year for us as we continue to develop new ideas and strategies to bring market-leading leisure and entertainment offerings to our customers.

“Macau continues to demonstrate its extraordinary growth potential and has shown resilience despite China’s uncertain macroeconomic outlook.”

Macau COO exits Melco 

However, as the results were announced, Melco was dealt a slight blow in Macau with the news that David Sisk, chief operating officer for the region, had resigned.

“We’ll be conducting a thorough search process to identify and appoint a high calibre individual to steer our business forward in Macau,” Ho said. “In the interim, Evan Winkler, our president, and I will be actively involved in the day-to-day operations of our Macau properties.”

Looking outside Macau

As for activities outside of the core Macau region, Melco in 2023 also opened a new casino in Europe. The City of Dreams Mediterranean opened its doors in July, increasing Melco’s presence in the European market.

There are also murmurings that Melco could explore opportunities in other countries. When the subject was raised in an investor call, Ho said it is still too early to talk about certain markets, but some projects could be in the offing.

“I think given we’re still climbing out of the Covid hole,” Ho said, “I think we’re looking at some like smaller potential projects, but nothing, I think that’s ready to be announced. 

“But in terms of the longer-term, bigger projects like UAE or Thailand, I think we’re kicking the tyres like everybody else. But as we learned from the Japan process, these things usually take time and it’s a multi-year process.”

Growth across the board for Melco

Looking at 2023, Melco reported revenue growth in all segments. Casino revenue hiked 186.0% to $3.08bn, while rooms revenue jumped 190.1% to $338.2m, food and beverage revenue 144.3% to $208.9m and entertainment, retail and other revenue 110.9% to $150.8m.

Melco did not publish a full-year breakdown of each property but did go into detail on costs for the year. Operating expenses jumped 77.3% on the back of Macau’s full reopening, with the main outgoing being casino costs at $2.03bn.

Melco also noted $466.9m in non-operating expenses, primarily interest costs. However, such was the impact of revenue growth that pre-tax loss improved from $1.09bn in 2022 to $401.9m.

The operator received $35.9m in tax benefit and accounted for $88.4m in income from non-controlling interests. As such, net loss for the year hit $277.6m, compared to $930.5m in the previous year.

In addition, adjusted property EBITDA hit $1.04bn for the year, in contrast to $0.6m in 2022.

Ending the year on a high

Turning to Q4, revenue for the final three months of 2023 increased 224.5% to $1.09bn. Of this, $897.8 came from casino activity, $103.4m rooms, $65.2m food and beverage and $27.2m entertainment, retail and other.

Operating costs increased 121.4% to $1.19bn while non-operating expenses amounted to $117.6m. This resulted in a pre-tax loss of $212.0m, an improvement on the previous year’s $293.4m.

Melco received $34.6m in tax benefit and noted $20.8m in income from its non-controlling interests. This resulted in a Q4 net loss of $156.6m, compared to $251.9m in 2022.

As for adjusted property EBITDA, this was 4,371.8% ahead of 2022 at $303.4m in Q4. 

End of an era as Rebuck retires from New Jersey regulator

Rebuck exits after leading the New Jersey regulator for 13 years, making him the longest-serving director in DGE’s history. In total, he served the Garden State for more than 36 years.

Deputy director Mary Jo Flaherty will assume the role of interim director with effect from today (1 March).

He joined the DGE as its deputy attorney general in January 1988, providing legal advice and legislation.

In early 2010, he was assigned to the governor’s office as a senior policy advisor under Chris Christie, shortly after which he was nominated by Christie to lead the DGE. After becoming acting DGE director in April 2011, Rebuck was sworn in as director in January 2012.

His tenure coincided with a significant overhaul of the New Jersey Casino Control Act. This brought sweeping changes including the assignment to DGE of many responsibilities previously performed by the Casino Control Commission. In relation to this, Rebuck also oversaw the introduction of new casino regulations, with these adopted in December 2011.

Changing face of New Jersey gambling

However, by far the biggest changes during Rebuck’s time in office were the launch of legal online gambling and sports betting in New Jersey. 

Rebuck led the New Jersey regulator through a period of unprecedented change and expansion, generating strong returns for the state

In February 2013, New Jersey became the first state in the US to roll out legal internet casino gaming. Then, in August 2018, it also launched legal sports wagering following the repeal of PASPA.

Such has been the impact of this evolution that New Jersey has continued to hit major financial milestones in recent years. 

During 2023, total gaming revenue reached an all-time high of $5.78bn (£4.58bn/€5.34bn). Igaming revenue hit a record $1.92bn, while sports betting revenue exceeded $1.00bn for the first time, on the back of a record $11.97bn handle.

Lasting legacy

New Jersey attorney general Matthew Platkin paid tribute to the outgoing Rebuck. He highlighted how Rebuck had helped usher in a new era of gambling for New Jersey.

“Throughout his career, David has exemplified professionalism, innovation and leadership as the gaming industry transformed, first with the legalisation of Internet gaming in 2013 and then with the new era of sports gaming in 2018,” Platkin said. 

“His extensive knowledge of the gaming and casino industry has made New Jersey a recognised regulatory leader and pacesetter in the US.”

Rebuck also looks back on his time as director fondly, praising the work done by others to support the evolution of New Jersey gambling.

“I have always said the achievements at DGE have not been the result of any one person,” Rebuck said. “I have been privileged and grateful to work with an amazing team at DGE and to serve under two governors and eight attorneys general.”

Questions over replacement?

Rebuck’s replacement, Flaherty, will be stepping into his empty shoes immediately from today. Another long-serving member of the DGE, she joined the organisation in 1979. 

As deputy director, Flaherty holds various responsibilities. These include overseeing casino licensing, financial analysis and reporting, employee licensing, public records requests, equal employment opportunity within the industry and DGE, ethics compliance and the release of information to law enforcement agencies and gaming authorities.

Platkin welcomed Flaherty to the interim role, highlighting her long experience with the DGE.

“Mary Jo is a respected and talented lawyer,” Platkin said. “She brings with her over 40 years of experience of regulating the gaming industry within DGE. I am grateful for her stepping up to lead the division at this critical time.”

However, speaking to iGB, an anonymous source questioned Platkin’s decision to appoint Flaherty to the interim role.

“Whomever took Rebuck’s shoes was going to have a hard time to follow his legacy, but this was the last direction I had hoped the AG would go,” the source said.   

“Streamlined” Golden Entertainment sees net profit in 2023, despite worrying Q4

Net profit for 2023 amounted to $255.8m (£202.6m/€236.6m), up from $82.3m on the back of the sales. Golden Entertainment said, understandably, this resulted in a decline in revenue as its property network shrunk.

Among the 2023 sales was Rocky Gap to Vici Properties and Century Casinos in a deal worth $260.0m. Vici acquired the venue from Golden Entertainment in July while Century took on the operations.

golden entertainment generated more than $500.0m in liquidity over 2023

Golden Entertainment also sold its Montana distributed gaming business to J&J Ventures Gaming in September. 

Incidentally, the Montana sales was part of a wider deal. This saw the group also offload its distributed gaming operations in Nevada to an affiliate of J&J Ventures Gaming. The deal, valued at $213.5m, completed just after the year-end in January.

The sales resulted in proceeds of over $600.0m, generating more than $500.0m of liquidity after taxes and transaction expenses. 

Reflecting on this activity, president and chief financial officer Charles Protell said the sales have helped streamline operations at Golden Entertainment. This also allowed the group to return capital to shareholders through a special dividend of $0.25 per share.

“These proceeds have significantly improved our leverage profile and enhanced our strategic flexibility,” he said. “Divesting our non-core businesses has concentrated our portfolio to wholly owned casinos and branded taverns in Southern Nevada, where we see some of the most favourable macro trends in the country.”

Gaming revenue dips on back of sales in 2023

Looking at the impact of sales on Golden Entertainment in 2023, it is no surprise revenue fell. For the 12 months to 31 December 2023, revenue was down 6.2% to $1.05bn.

Gaming revenue slipped 11.4% to $674.3m as the group’s operating portfolio shrank in 2023

A fall in gaming revenue was the main reason for the overall drop. Gaming revenue slipped 11.4% to $674.3m as the group’s operating portfolio shrank. However, food and beverage revenue was up 4.0% to $182.4m, rooms revenue 1.6% to $124.6m and other revenue 13.8% to $71.8m.

In terms of segmental performance, the Nevada Casino Resorts business led the way. Here, revenue was 1.5% higher at $413.1m. Nevada Locals Casinos revenue was level at $157.4m, as was Nevada Taverns revenue at $109.2m. 

Full-year revenue features some contribution frow now-sold assets. This includes $43.5m from Rocky Gap and $320.7m from distributed gaming operations in Nevada and Montana.

Asset sales push net profit up

Costs-wise, net total expenses were down 32.9% to $653.9m. This was primarily due to the $303.2m gain on the sale of businesses in 2023. Golden Entertainment said these sales also led to an 11.5% drop in gaming costs for the year.

The group also noted $67.2m in non-operating costs, leaving a pre-tax profit of $332.0m, up 300.5%. Golden Entertainment paid $76.2m in tax, resulting in a total net profit of $255.8m, compared to $82.3m in 2022.

However, adjusted EBITDA for the year declined 19.4% to $222.5m when taking into account asset sale impact.

Golden Entertainment slips to net loss in Q4

Turning to Q4 and this did not make for as nice reading for the operator. Revenue reached $230.7m, down 17.5% to $230.7m. Again, this was due to a drop in gaming revenue, which fell 25.0% to $138.7m.

The impact of asset sales was clear to see in the quarter. Golden Entertainment was without any revenue from Rocky Gap, with the sale having completed in July, while some of the distributed gaming operations had also been sold by this point.

With gaming revenue down 25.0% in q4 there will be questions about momentum in 2024

However, revenue was level within the Nevada Casino Resorts segment at $104.8m, while Nevada Locals Casino was only slightly lower at $38.5m. Nevada Taverns revenue also edged up to $27.7m.

As for costs, operating expenses in Q4 were 8.5% lower at $223.6m, while a further $14.5m was noted in non-operating costs. This left a pre-tax loss of $7.4m, in contrast to a $17.3m profit in 2022.

Golden Entertainment paid $2.0m in tax, meaning it ended the quarter with a net loss of $9.4m, compared to the previous year’s $11.1m profit. In addition, adjusted EBITDA was 23.4% lower at $48.8m.

Intralot signs seven-year agreement with Magnum Corporation

This comes after Magnum Corporation issued an international call for tenders in 2022. The new agreement can be extended for two five-year periods, bringing the total agreement period to 17 years.

As part of the deal, Intralot will aid the transition of Magnum Corporation’s retail offering to Intralot’s LotosX Omni ecosystem. LotosX Omni comprises of multiple player and operational systems. These include the LotosX Central Gaming System and the PlayerX Player Account Management System.

Transitioning to LotosX Omni will allow Magnum Corporation to offer an omnichannel strategy across its retail and digital offerings.

Dato’ Lawrence Lim Swee Lin, CEO of Magnum Corporation, said the continued partnership with Intralot would result in an improved gaming experience.

“Magnum Corporation is proud to continue this partnership with Intralot, a steadfast ally in helping us grow our business and to innovate the gaming experience for our customers,” he said.

“With our industry expertise and Intralot’s cutting-edge technology, we are crafting a future of innovation together, creating a more immersive gaming experience with enhanced levels of personalisation and security, both in our retail and digital spaces.”

Ongoing partnership

Marios Mitromaras, CEO of Intralot Australia, said Intralot’s technology would continue to enhance Magnum Corporation’s gaming offerings for players.

“We are very pleased to keep working with Magnum Corporation,” he said. “Our continued collaboration is a partnership built on trust, understanding and a shared commitment in elevating gaming excellence for their customers.”

“We look forward to deploying our cutting-edge technology and high-quality operating services as Magnum Corporation continues to push boundaries and take steps to modernise their player experience.”

The news comes after Intralot made a number of major moves in 2023. In June, it agreed to a deal to supply system technology to Taiwan’s Public Welfare Lottery. It also penned a sports betting deal with the British Columbia Lottery Corporation (BCLC).

In terms of its finances, Intralot reported faltering revenue for the first six months of 2023. It slipped 2.9% year-on-year to €163.6m – however, EBITDA grew 14.0% to €62.8m.

In November, subsidiary Intralot Capital Luxembourg confirmed it would go ahead with a partial redemption of senior notes totalling €126.0m. During the same month, Intralot confirmed that it would issue €135m in new shares.

North Carolina issues eight online sports betting licences ahead of launch

Sports betting will launch in North Carolina on 11 March. This is after the state’s governor, Roy Cooper, signed House Bill 347 into law last year.

Among the approved licensees are heavy-hitters such as FanDuel and DraftKings. Fanatics, Bet365, BetMGM, ESPN Bet and Underdog are also set to launch in the state.

Operators who sought approval to offer sports betting in the state had to partner with a sports team, league or venue within North Carolina. That led to a flurry of deals as operators looked to secure entry into the state.

For instance, DraftKings partnered with stock-car racing series Nascar, while BetMGM teamed up with the Charlotte Motor Speedway in the state. ESPN Bet gained entry to North Carolina by signing a major PGA Tour deal to become the official betting operators of the Wells Fargo Championship, held in the state.

Probably the least well-known brand to launch is Underdog, with North Carolina being its first sports betting licence after expanding from its position as a paid fantasy sports operator. It has managed to do this thanks to a partnership with McConnell Golf.

Caesars Entertainment, meanwhile, signed a tribal deal, expanding its relationship with the Eastern Band of Cherokee Indians (EBCI). However, with the EBCI still waiting for approval as an operator, Caesars has only received a service provider licence.

Only seven operators were initially named on the Commission’s approved list. However, later on Thursday, an enterprise of the EBCI called the Tribal Gaming Casino Enterprise was added. The EBCI already has land-based sports betting at its casinos in Cherokee and Murphy.                                           

11 March the big day for sports betting in North Carolina

Players in North Carolina can register and begin deposits from 12pm ET on 1 March (Friday).

Companies who have received a sports wagering supplier’s licence ahead of 11 March include GeoComply, SBTech and Sportradar.

Earlier this month, the Commission approved a voluntary self-exclusion programme for North Carolina residents. It forms part of the NC Problem Gambling Programme, which offers gambling harm prevention, education and services. House Bill 347 stipulated that an additional $2m (£1.6m/€1.9m) per year would be allocated to the programme in order to expand it.

Players can submit a voluntary self-exclusion enrolment form on the Commission’s website. Players can choose to self-exclude for one year, three years, five years or for their lifetime. Following this, players will be unable to place bets online, in a retail sportsbook or place bets on horses. Any winnings that may occur will be surrendered.

North Carolina will be the 30th US state to offer online sports betting. Tax has been set at 18% of each licence holder’s gross gaming revenue. This was previously 14%, however it was later amended in the senate.

Fanatics hits milestone with sportsbook launch in New York

Players in New York can now download the Fanatics Sportsbook and begin placing bets on a range of events.

Fanatics replaces PointsBet in New York. Customers previously betting with PointsBet in the state will have their information automatically migrated to the Fanatics Sportsbook. This includes their username, password, account balance, rewards points and any responsible gaming settings.

The launch marks the latest phase of Fanatics’ acquisition of PointsBet US. FBG purchased the business in August 2023 and has been phasing out the PointsBet brand ever since.

Earlier this week, Fanatics also rolled out its sportsbook product in Indiana. The New York launch means it is now active in 15 states including Colorado, Connecticut, Iowa, Kentucky, Maryland, Massachusetts, Michigan, Ohio, Pennsylvania, Tennessee, Vermont, Virginia and West Virginia.

FBG also operates the Fanatics Casino in Michigan, Pennsylvania and West Virginia.

Record January for New York

Fanatics enters New York after the state reported record sports betting figures in January.

During the month, New York set a new online sports betting revenue record of $211.5m (£167.5m/€195.7m). This was 12.3% ahead of the previous record of $188.3m.

As for handle, players wagered $1.96bn, up 9.5% from $1.79bn in January 2023 but 3.9% less than December’s $2.04bn.

In terms of the legacy PointsBet business, the brand is placed in the middle of the pack. For January, it posted revenue of $2.6m and a $31.7m handle.

FanDuel leads the market, posting a record $109.2m in online betting revenue for January off $867.1m in wagers.

Fanatics set for North Carolina launch as licence approved

Confirmation of the New York launch comes as Fanatics also looks set to go live in North Carolina.

Two weeks ahead of the market opening, the North Carolina State Lottery Commission has awarded eight interactive sports wagering licences to operators. Fanatics is among those to have secured approval.

Other early licensees in North Carolina include FanDuel, DraftKings, Bet365, BetMGM, ESPN Bet and Underdog.

Fanatics has already secured a market access agreement with the NHL’s Carolina Hurricanes in the state. 

Nevada gambling revenue hits $1.28bn in record-breaking January

Revenue was marginally higher than $1.27bn in January 2023 but 10.5% behind December’s $1.43bn haul.

Slots accounted for $885.9m of revenue in January, up 1.3% from last year. Some $567.2m of this came from multi-denomination slots, while penny slots drew $231.1m in revenue.

Table and card games decline hits Nevada

In contrast to this growth, table, counter and card games revenue dcelined 7.5% to $393.5m in January. 

Blackjack was the primary source of revenue here, despite an 18.2% decline to $98.3m. Craps revenue slipped 19.4% to $32.0m and roulette 40.7% to $27.4m.

Baccarat was only one of four areas within this segment to post growth, with revenue up 8.0% to $98.0m. Pai Gow poker revenue jumped 125.5% to $11.2m, while “card games” revenue climbed 0.5% to $13.2m for the month.

American football betting drives sports wagering growth

Sports betting is reported as part of the growth, table, counter and card games. Incidentally, it was the only other area to report growth during January.

For the month, sports pool revenue was 28.4% higher at $64.7m. Of this total, $30.1m came from mobile betting in Nevada.

Wagering on American football generated $38.5m in revenue as the NFL season neared its conclusion. Nevada’s gambling haven of Las Vegas played host to the NFL’s end-of-season showpiece Super Bowl event in early February.

Elsewhere, basketball betting revenue reached $18.4m and hockey revenue $3.1m. Parlay cards only drew $173,000 and other sports £5.7m, while baseball betting resulted in a $1.0m loss.

Las Vegas Strip revenue down in January

Focusing on the famous Las Vegas Strip, revenue was 3.8% lower year-on-year at $686.2m. 

Slot machine revenue on the Strip edged up 3.1% to $400.8m. However, revenue from table, counter and card games declined 12.1% to $285.4m. 

In terms of sports betting, Strip revenue from sports pool wagering hiked 35.4% to $28.5m.

KSA hits Gammix with record €19.6m penalty

In June 2022, Gammix was ordered to leave the Dutch market or risk paying €1.4m in weekly fines. The following March, the KSA ordered Gammix to pay €4.4m for not complying with an order to stop operating in the Netherlands.

This latest fine is related to these two previous orders, with the KSA noting that Gammix “has not taken any measures to ban players from the Netherlands”.

In its latest decision, the KSA claimed that Gammix continues to offer illegal online gambling on a number of websites available to Dutch players. These include rantcasino.com, betoriginal.com and nordslot.com. The investigation into Gammix in March 2023 had concerned rantcasino.com and nordslot.com.

In its latest fine ruling, the KSA catalogued its monitoring of Gammix’s sites during periods throughout 2022. These were initial investigations and reinspections, which found that the sites continued to be available to those in the Netherlands.

Based on these, the KSA sent its report to Gammix, which responded in May 2023 arguing that there was no basis to issue a sanction.

Gammix’s Dutch turnover estimated at €302.7m

The KSA claimed that the sites continued to be accessible from a Dutch ISP and continually accepted account registrations from the Netherlands. This was evidenced by the sites offering the +31 Dutch area code and not stipulating the Netherlands as a prohibited country.

Despite Gammix branding the KSA’s report as “careless” and drawn up without due care, the KSA decided to issue the fine. It ruled that Gammix, as an operator, should have been aware of Dutch laws regarding online gambling, as well as the potential for enforcement from the KSA.

The KSA also named a number of aggravating circumstances that increased the total fine. These included inactivity costs and a lack of age verification.

Ultimately, Gammix’s €19.6m fine was judged to be 6.5% of its estimated Dutch turnover, which was calculated at €302.7m.

Gammix hits back against “outrageous and unsubstantiated” fine

Responding to the fine’s publication today (1 March), Gammix confirmed that it would contest the KSA’s decision. Phil Pearson, director of Gammix Limited, called the fine “outrageous and unsubstantiated” and vowed to continue fighting against it.

“The KSA has imposed upon our company a penalty that is both outrageous and unsubstantiated, said Pearson. “Now that we are able to talk openly about the case, we can confirm that we are fighting on all fronts as, to us, this is an extraordinary and unnecessarily heavy-handed action from a regulator that many already regarded as unapproachable.”

Pearson claimed that Gammix had communicated to the KSA that it had blocks in place, and had asked the KSA for further information, which Pearson said was ignored.

In a press release issued earlier today, Gammix claimed accounts used to access its sites during the investigation were created in Luxembourg, with deposits made via credit card.

Gammix added that such action violates the sites’ terms and conditions, specifically the provision of false information upon sign-up.

The operator also asserted that the penalty was calculated using figures from a proprietary web-traffic aggregation service and a multiplier of €240 per click. Gammix believes this would show turnover that doesn’t exist.

“When we received the first notice of a possible penalty, we reached out to them to say we have blocks in place,” Pearson highlights. “We also asked for any information they had that was material to the investigation, to ensure we remained in compliance with all guidelines – a request they appeared to ignore.

“Our lawyers also approached the regulator, in writing, to gain more information, but again no response was forthcoming.”

“Mystery shopper” investigation style under fire

The KSA’s “mystery shopper” method of investigation has proven contentious in the past, with operator Videoslots issued with a €9.87m penalty in March 2023.

At the time, Videoslots said it would challenge the ruling, accusing the regulator of abusing the mystery shopping regime.

In preparation for a KSA application in April 2022, Videoslots said the regulator’s logo was mistakenly visible for a short period of time on its website before being quickly removed.

When the KSA became aware of the mistake, Videoslots said the regulator tried to sign up as a Dutch customer and failed because of measures it had put in place.

The KSA was then said to have gained unauthorised access by pretending to be a German customer, managing to make a deposit and a single bet of 20 cents.

As soon as Videoslots learned a KSA official had unlawfully accessed its site, the operator said it implemented further measures to prevent this happening again.

However, the KSA said Videoslots violated the Dutch Gaming Act by allowing access and issued the fine, with the operator having denied the allegation and confirmed it would challenge the decision.