LCS ‘categorically’ disputes ‘unjust’ & ‘unwarranted’ €2m Dutch fine

LCS has hit back at a €2.07m fine that was issued within the Netherlands, labelling the financial penalty as “unwarranted” and “unjustified” alongside an intention to appeal.

This followed a long protracted dispute that initially began in March 2022 when it was discovered players could access the group’s Son of Slots site

However, the company has suggested that the action taken by the Dutch gambling authority “demands our attention”, with the Ksa’s reaction described as “undeniably excessively punitive”.

“Let us be unequivocally clear: we take our obligations under Dutch law seriously,” a statement issued by the group reads. 

“The fine levied upon LCS Limited is not only excessive but also unjust, considering the facts. It’s important to clarify that this fine pertains to a accidentally, single instance of violation that occurred in early 2022. 

“We took immediate, decisive action to rectify the situation, effectively preventing Dutch customers from registering on our platforms.”

A July 2022 follow-up to the aforementioned discovery found that there was no change to accessibility, with a cease and desist order subsequently issued a little over one month later.

This saw the company notified that it would have to pay a penalty of €55,000 per week or part of the week, amounting to a maximum of almost €165,000, for a lack of adherence. An investigation conducted on September 14, 2022, discovered that the site was no longer accessible. 

LCS also cited this latter point, elaborating on “proactive measures” in having prevented Dutch customers from registering, a point that it said was “attested by the Ksa’s official statement”.

“In this regard, Ksa’s own confirmation stands as a self-evident testament of our compliance with the regulations,” LCS’ statement continued.

“The imposition of the aforementioned fine can be seen as even more unreasonable and as violating the protection of the legitimate expectation of any reasonable entity, because the fine should be qualified as a punitive sanction, while a sanction of a punitive nature has already been imposed earlier, namely the order subject to penalty.”

Furthermore, the overall figure of the penalty that has been issued has also been rejected, with LCS suggesting that calculation methodology has “proven to be wrong”, in addition to being “flawed and without merit”.

“We are aggressively pursuing an appeal to challenge this unjust decision,” LCS added. “The fine, which we reiterate is based on a single, past violation, does not align with our current operations, which have consistently adhered to Dutch regulations.

“It is of utmost importance to dispel any confusion created by recent media reports. We want to make it explicitly clear that LCS Limited has not re-entered the Dutch market in any capacity.

“We categorically dispute this unwarranted fine and remain unyielding in our commitment to upholding compliance and fairness in our operations.”