Dutch Gambling Regulator KSA Issues Record €25 Million Fine to Novatech

The Dutch gambling regulator, Kansspelautoriteit (KSA), has issued a record €24.9 million ($28.9 million) fine to online gambling company Novatech, the operator of the brands Qbet and 55Bet. The penalty comes at a time when the country is dealing with a big drop in tax revenue from gambling after introducing several restrictions on the industry.

The regulator announced the sanction on Tuesday, accusing Novatech of enabling players to participate in unlicensed gambling. On the same day, it also issued a €1.8million ($2 million) fine to Fortaprime, which operates several online casinos without a valid license.

KSA investigators found that customers in the Netherlands could easily create player accounts and make deposits at platforms run by Novatech and Fortaprime. Furthermore, rather than excluding Dutch players, the companies were actively targeting users in the country.

Novatech holds a license in Curacao, while Fortaprime is registered in Costa Rica, but does not appear to hold any valid gambling licenses.

Fines Based on Operator Turnover

Novatech received a harsher penalty due to its higher turnover. KSA Chair Michel Groothuizen commented, “We determine the fine based on the (estimated) turnover the illegal provider generated from players in the Netherlands. We are limited in this respect by the law, which stipulates that the fine may not exceed 10% of global turnover.”

If allowed, Groothuizen said he would have issued a far greater fine. He added, “Novatech earned hundreds of millions from its illegal offering, primarily from Dutch players. A fine of €24m sounds impressive, but without the 10% maximum, the fine would have exceeded €100m; an amount that would be more appropriate for this offence.”

KSA has also threatened to fine the prediction market platform Polymarket recently. The regulator has taken issue with Polymarket offering markets on Dutch elections, which are prohibited. It ordered the company to stop accepting users in the Netherlands or face weekly fines of up to $500,000.

Legal Market Restrictions Driving Users Offshore

The Netherlands has introduced several restrictive measures on the gambling industry, which it admits is driving users to use unlicensed gambling platforms.

Last year, the KSA reported that the amount being wagered at unregulated gambling platforms exceeded the regulated market.

It explained the shift, noting, “This downward trend may be explained by players shifting to illegal offerings due to the new player protection regulations, where these perceived restrictive rules do not apply.”

The country introduced a monthly deposit limit of €700 ($796.24), reduced to €300 for those aged 18 to 25. In addition, the Netherlands increased taxes on gambling companies to 34.2% last year and to 37.8% in January this year.

Gambling trade body VNLOK has called for a review of the increased rates. The group noted the country collected €43.5 million less in tax revenue in 2025 than in 2024.

Regulators Must Consider Balance

In a letter sent this week, VNLOK urged authorities to “explicitly consider the relationship between tax burden, illegal supply, player protection, and contributions.”

Groothuizen has admitted the tax increase is reducing the country’s income, but believes the cost is worth it if players are more protected. In addition to the increased taxes and deposit limits, the country has banned gambling advertising in sports.

As US states consider restricting gambling markets, the Netherlands provides an example of the effect of such measures. While tax revenue has declined, player losses have also dropped, falling from an average of €146 ($168) per month in 2024 to €119 ($137) per month in 2025.

Critics argue that players may lose more on unlicensed platforms, but the KSA’s fines against Novatech and Fortaprime aim to stop other unregulated companies from targeting users in the Netherlands.